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Catch up with the latest press releases from LV=

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LV= Q2 2014 trading statement

Press release: 28/07/2014

Mutual insurance, retirement and investment group LV= issues its trading statement for the six month period from 1 January to 30 June 2014.

General insurance sales

General insurance sales

6 months ended
30 June 2014

6 months ended
30 June 2013

12 months ended
31 December 2013

Gross Written Premium (GWP)

£720 million

£748 million

£1.45 billion

GWP by channel:

- Direct

£408 m

£423 m

£824 m

- Broker

£312 m

£325 m

£621 m

GWP by product:

- Motor (private)

£495 m

£559 m

£1,054 m

- Home

£89 m

£75 m

£155 m

- Commercial inc. SME

£117 m

£96 m

£201 m

- Other

£19 m

£18 m

£35 m

Motor in-force policies

3.0 m

3.1 m

3.1 m

Total in-force policies

4.5 m

4.3 m

4.4 m

Life insurance sales

Life insurance sales

6 months ended
30 June 2014

6 months ended
30 June 2013

12 months ended
31 December 2013

Life overall (PVNBP)

£732 million

£651 million

£1.43 billion

Retirement

£566 m

£510 m

£1,137 m

- Pensions

£277 m

£297 m

£587 m

- Annuities

£232 m

£176 m

£457 m

- Equity release

£57 m

£37 m

£93 m

Protection

£96 m

£97 m

£195 m

Savings & Investments*

£70 m

£44 m

£101 m

Present Value of New Business (PVNBP) is the total of new single premium sales received in the year plus the discounted value, at the point of sale, of the regular premiums we expect to receive over the term of the new contract sold in the year. For equity release this represents the amount of loans provided. We have moved to reporting on a PVNBP basis rather than APE (Annual Premium Equivalent) which we have reported historically as we believe PVNBP is a clearer representation of sales.

* Savings and investments are predominantly with-profits investment bonds.


Mike Rogers, LV= Group CEO commented:

"Six months into 2014 sales in both trading businesses have been steady. General insurance continues to grow its customer base although we are continuing to see pressure on premiums. Sales in the life business have been strong despite the unexpected budget changes announced in March affecting retirement solutions. We offer an excellent level of customer care and this is demonstrated in our recently announced status as the best performing insurer for customer satisfaction, according to research conducted by the Institute of Customer Service."

"In general insurance, we have seen good levels of growth in home and SME with sales up 22% in the latter compared to this time last year. This is in line with our strategy of increasing our customer base in these lines of business. Overall GWP is down compared to 2013 primarily driven by lower rates in motor, which is a large part of our book. However we have recently seen indications that premiums are starting to increase and we expect this to continue over the second half of the year. We continue to take on more new customers and now have 4.5 million general insurance policyholders across increasingly diverse product lines, 230,000 more than this time in 2013."

"In our life business sales are up over £80 million compared to this time last year which is a good achievement given the background of budget changes announced in March that affect our retirement business. These strong sales reflect our quick customer focused actions after the budget including the launch of a new one year annuity and a new simplified drawdown product. We initially expected annuity sales to be significantly down but sales have held up well and are up over 30% year-on-year albeit at lower margins. In Q2 post-budget we saw sales of £117 million, slightly more than Q1 demonstrating our continuing strength in this area. Equity release sales also performed particularly strongly up over 50% comparatively."

"During the first half of the year in protection we further enhanced both our income protection and highly acclaimed critical illness policies to be market-leading and the most comprehensive in the market. In addition we launched a product in a new area of the income protection market aimed at people whose jobs typically make them more expensive to insure including tradespeople and drivers."

"Our savings and investment portfolio, predominantly with-profits bonds, has been popular with sales in this area up by nearly 60% compared to last year demonstrating that these products continue to be popular and relevant. Earlier this month we made our flexible guaranteed funds available via our self-invested personal pension to help advisers and their clients take advantage of these products in the context of the new pensions landscape."

"I am confident that LV= is well placed for the future with our increasingly significant footprint in both business areas and our ongoing commitment to excellent customer service."


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For further information please contact:

Emma Banks, emma.banks@lv.com, 0208 256 6714 / 07894 158 605


LV=

LV= employs 5,800 people and serves over 5.5 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 trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.