LV= announces 2025 financial results

LV= has maintained a strong capital position, delivered positive investment performance and shared £100 million with members. LV’s 2025 results underline that its focused business strategy continues to deliver for members.

Investment, protection, retirement and in-house advice specialist LV= announces its financial results for the year to 31 December 2025 and publishes its Annual Report.

Key financial and operational highlights:

• LV’s member-first philosophy delivers member bonuses* of £100 million to 250,000 eligible member policies. This amount, the largest in LV’s history, includes £80 million in respect of a final distribution of proceeds from the sale of the General Insurance business. Since 2011, £513 million of member bonuses have been shared with eligible members.

• Ongoing financial strength with a Capital Coverage Ratio (CCR) of 202% (FY 2024: 192%) and Solvency II capital surplus of £370 million (FY 2024: £411m).

• Strong investment performance across LV’s funds including a 14% return on the main With-Profits Fund (FY 2024: 7.9%).

• Stable operating capital generation of £48 million (FY 2024: £55m).

• Increased growth in Protection with sales up 8% year-on-year and a new high in market share of 8.4%**. 

• Equity Release mortgage sales nearly doubled to £181 million (FY 2024: £94m) and a new high in market share of 6.9%**.

• Operating expenses (excluding commission payments) continue to be well managed at £145 million (FY 2024: £153m). 

• S&P rating increased to BBB with a positive outlook.

• Continued investments in digital self-serve portals, web chat and call services, further improving access to LV= products and services.

• Service rated excellent by customers according to net promoter scores.

David Hynam, LV= Chief Executive, said:

“Our 2025 results demonstrate how we are consistently delivering for our members. We have maintained capital strength, enhanced investment performance and, most importantly for a mutual, shared £100 million of bonuses with eligible members. Our results reflect our clear strategy, steady execution and a team focused on always doing the right thing for members, customers and advisers.

“We remain resilient in the face of market shifts and external pressures, operating from a foundation of underlying financial strength, evidenced by our Capital Coverage Ratio of 202%. Our Solvency II surplus of £370 million further supports this position and ensures we remain well-placed to continue supporting members through changing market conditions.

“Despite increasingly competitive markets, we’ve delivered improved new business sales across Protection and Equity Release, with both reaching new market share highs of 8.4% and 6.9% respectively, as well as seeing increases in sales of our Smoothed Managed Fund range. This performance reflects the strength of our propositions and our continued focus on meeting our customers’ needs.

“We have also seen a positive return of 14% on our main With-Profits Fund, which is a result of the active management, oversight and expertise of our in-house investment team in partnership with our primary asset manager, BlackRock.

“Looking ahead, we remain focused on long-term member value and the financial strength of the business. We will continue to invest where it matters, maintain strong capital discipline and do the right thing for our members today and for generations to come.”

Financial highlights:

At the heart of LV’s delivery is its member-first philosophy: when the business succeeds, so does its members. Reflecting this commitment, LV= shared £100 million of member bonuses with eligible member policies. This included a one-off final distribution of £80 million relating to the 2019 sale of the General Insurance business.

LV’s focused business strategy is built on a position of underlying financial strength, demonstrated by a Capital Coverage Ratio of 202% (FY 2024: 192%) and a capital surplus of £370 million (FY2024: £411m). 

Operating expenses (excluding commission payments) remain well managed at £145 million (FY 2024: £153m), reflecting disciplined cost management in the context of inflationary pressures, while still supporting important investment in the business. Additionally, LV’s overall performance was recognised by S&P, resulting in an improved rating to BBB with a positive outlook.

Despite rising competitive and margin pressures in key markets, sales performance across core propositions remained strong versus the prior year. Protection sales reached £430 million (FY 2024: £398m), rising by 8% year-on-year, while Equity Release sales nearly doubled to £181 million (FY 2024: £94m). Both propositions achieved new market share highs, reflecting the strength of LV’s product offering.

Sales of Smoothed Managed Funds increased to £123 million (FY 2024: £89m) and the Smoothed Managed Fund range continued to perform with a 9.7% smoothed return on the Balanced Fund (FY 2024: 12.5%). There was a 14% return on the main With-Profits Fund (FY 2024: 7.9%), supporting further growth across the portfolio. 2025 also marked 20 years since the launch of LV’s smoothed investment product, created to limit the impact of market volatility and enable a smoother investment journey.

Profit before tax and member bonuses was £63 million (FY 2024: £80m), with the payment of £100 million member bonuses leading to a loss before tax of £37 million (FY 2024: profit before tax £51m). This reflects pressure on trading and new business profitability in competitive markets offset by strong investment returns and positive one-off management actions, including updating the retirement basis on some of our legacy policies which had previously adversely impacted our 2024 results.

LV= also enhanced its Fixed Term Annuity, meaning all new customers become eligible for a mutual bonus after the first 12 months – the UK’s first with-profits fixed term annuity product to offer members a share in business success.

Significant progress was made on a key strategic transformation project to implement new portals across the protection business. These portals aim to deliver an improved customer, adviser and colleague experience through faster self-service, shorter journey times and improved claims journeys.

Alongside this, there has been continued investment in LV’s multi-year programme to improve its core systems and enhance the end-to-end experience for members, customers and advisers. This investment has resulted in decreased call waiting times and increased self-service functionality.
 
In 2025, LV= received external recognition across its propositions, customer experience and colleague engagement. Service performance showed continued strength, with customers rating the service as excellent, based on net promoter scores. LV= was named Mutual Insurer Investment Strategy of the Year at the Insurance Investor European Awards and secured Moneyfacts’ Best Income Protection Provider award for the 16th consecutive year, demonstrating continued strength in delivering positive customer outcomes. The business was also recognised by the Financial Times as one of the UK’s Best Employers, alongside further awards acknowledging its colleague experience, organisational culture and service delivery.

LV= remains committed to sustainability and safeguarding the environment. LV’s approach is integrated into business planning to ensure that climate change and other ESG considerations are captured across its operations. In 2025, LV= Together was launched, strengthening the mutual’s commitment to delivering social impact. LV= reports on its 2025 sustainability achievements in its latest Sustainability Report, which can be found at LV.com/lvcares.

Looking ahead, LV= remains focused on long-term value, strong delivery and supporting those it serves.

Notes to editors: 

• These numbers are unaudited.
• i, ii, iii The Solvency II capital metrics reported in this press release are based on the estimate of the year end results as at 26 March 2026. It is possible that the capital position will be adjusted prior to the publication of the group’s Solvency and Financial Condition Report later in 2026.
• Certain statements in this press release may constitute "forward-looking statements". These statements reflect the Issuer's expectations and are subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. The Issuer disclaims any obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law.

*About the member bonus:

• LV= delivered £100 million in member bonuses (£20m mutual bonus and £80m one-off bonus).
• A one-off bonus is being awarded as the final distribution from the proceeds of the 2019 sale of the General Insurance business to eligible member policies, as part of the 2025overall bonus declaration. This replaces the exit bonus which LV= has previously distributed to eligible members when their policy matured, was cashed in, paid out a death claim or when they started to receive money from the policy. The one-off bonus will be added to policy values on 1 April 2026 rather than at time of claim, increasing certainty of payment for members.
• Further information about the member bonus distribution can be found at LV.com/annual-report.
• Profit before tax and member bonuses is used as a measure of our profitability on a comparable basis to companies owned by shareholders. We view the discretionary member bonuses we allocate to eligible members as being equivalent in nature to the dividend payments made by shareholder owned companies. However, UK GAAP requires these member bonuses to be reported as a change in long-term business provision, thereby reducing the reported profit before tax.

**Market share figures from Q1 - Q3 2025