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Catch up with the latest press releases from LV=

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LV= announces strong life sales performance in the first half of 2012

Press release: 30/07/2012

LV= announces its half year 2012 life sales results:

Life and pensions sales up 24% to £86.0m on an APE basis (H1 2011: £69.3m).
This includes:

  • Retirement business 25% increase with APE £66.7m (H1 2011: £53.5m)

  • Protection business 20% increase with APE £16.1m (H1 2011: £13.4m)

Richard Rowney, LV= Life Managing Director, said: “We have seen great momentum in our sales during the first half of 2012. We are exceeding the levels we achieved in 2011, which in itself was a record year for us. This success is built on the growing reputation of LV=’s life and pensions business offering a high level of service, with quality products, and competitive pricing.”

Highlights of performance by product include:

  • Annuities:* 48% increase with APE £36.0m (H1 2011: £24.3m)

  • Pensions: 5% increase with APE £26.4m (H1 2011: £25.2m)

  • Protection: 20% increase with APE £16.1m (H1 2011: £13.4m)

  • Equity Release: 9% increase with APE £4.3m (H1 2011: £4.0m)

Richard Rowney continued: “All areas of our life business have performed strongly. Annuities in particular stands out with sales increasing strongly compared to the same period last year. The number of people approaching retirement has rapidly increased as the baby boomers reach 65. In addition, more people are using the open market option to shop around for enhanced, fixed-term or investment linked annuities.

“We believe that the annuity market will begin to factor in Solvency II and the cost of credit defaults in the second half of 2012, pushing down the value of a conventional annuity for many. Therefore, we expect to see more people seeking alternatives that offer greater flexibility or a higher income in retirement. We are well placed to provide a solution with our wide range of specialist and flexible retirement products.

“Our protection business also continues to go from strength to strength. The re-launch of our critical illness product earlier this year has proved popular with advisers, giving us another market-leading product alongside income protection, where we remain the largest provider in the advised market. Our success in protection was also marked this year by winning ‘best overall provider’ at the LifeSearch awards, an accolade which highlights how far we have come in this market.

“The second half of 2012 will be challenging, with the added pressure of the significant legislative changes ahead, but we are confident that we will continue to see considerable growth in our life business.”

Notes:

* Annuities includes enhanced, with-profits and ‘fixed term annuity’ protected retirement plan

APE = Annual Premium Equivalent
This is a measure comprising new regular premium sales plus 10 per cent of single premiums.

LV= Sales Results in APE

Half Year 2012

Half Year 2011

Full Year 2011

Life and Pension Overall

£86.0m

£69.3m

£142m

Retirement Business

£66.7m

£53.5m

£114.3m

Protection Business

£16.2m

£13.4m

£28.0m

Annuities

£36.0m

£24.3m

£53.0m

Pensions

£26.4m

£25.2m

£46.7m

Equity release

£4.3m

£4.0m

£8.5m

LV= employs over 5500 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. www.LV.com.