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LV= profits surge as retirees shop around for new income solutions

08 September 2015 | Press release

LV= Life and Pensions announces interim results for six months ending 30 June 2015.

Life and pensions financial highlights:

  • Life operating profit up to £12 million (H1 2014: loss of £5 million)
  • New business contribution up 117% to £13 million (H1 2014: £6 million)
  • Life business sales up 20% to £864 million (H1 2014: £721 million) measured on a present value of new business premiums (PVNBP) basis
  • Retirement sales up 15% to £720 million (H1 2014: £625 million)
  • Protection sales up 50% at £144 million (H1 2014: £96 million)

Strategic and operational highlights:

  • The UK’s most recommended insurer according to research by YouGov amongst 30,000 consumers
  • Voted ‘most trusted life insurer’ by consumers in the Moneywise awards for the third year running
  • Launched the first online regulated advice service, LV= Retirement Wizard (also marketed as Clear Online Retirement Advice), to help retirees to make the most of their pension savings
  • Took a majority stake in UK based automated advice experts Wealth Wizards

Richard Rowney, Managing Director of LV= Life and Pensions, said: “The life business has had a very strong first six months of the year and our operating profit is up to £12 million. In addition, our new business contribution has more than doubled from £6 million to £13 million.

“The impact of the 2014 Budget has led to a change in buying behaviour with more pension savers shopping around for retirement income solutions. LV= offers a range of products and we have seen strong sales, up £95 million compared to H1 2014. We have seen pensions performing particularly well due to increased demand for our drawdown proposition, with sales up 45% on this time last year. Our flexible guarantee bonds are also proving to be very popular with those approaching retirement resulting in year-on-year sales increasing by 136%. Sales of our fixed term annuities have risen by 18% which supports our view that our annuities will continue to play a role in helping retirees to fund their retirement.

“We have invested significantly in developing new technology that helps people make the most of the new pensions freedoms. Earlier this year we became the first provider to create a fully regulated online advice service, LV= Retirement Wizard, which seeks to close the advice gap by making it easier for savers to access advice, and more cost effective for advisers to offer it, especially for those with smaller pots of money. As part of our innovation in this area, we have taken a majority stake in Wealth Wizards, who we developed LV= Retirement Wizard with, and who will be marketing an automated advice platform.

“The protection business has performed extremely well in the first six months of the year and total sales have increased by 50%, with increases across all core lines, including income protection, critical illness and term. We remain the number one provider for individual income protection policies, which further demonstrates the strength of the LV= brand, and our customer focused proposition. We plan to build on our existing product range and broaden our offering including launching our new business protection proposition later this year.

“We are committed to making it easy for customers and advisers to do business with us and I believe that the investments we have made in our products and propositions mean that LV= is well placed for the future.”

Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK