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LV= Q1 2015 trading statement

27 April 2015 | Press release

Mutual insurance, retirement and investment group LV= issues its trading statement for the three month period from 1 January to 31 March 2015.

General insurance sales

3 months ended

31 March 2015

3 months ended

31 March 2014

12 months ended

31 December 2014

Gross Written Premium (GWP)

£362 million

£363 million

£1.39 billion

GWP by channel:

- Direct

£212 m

£212 m

£789 m

- Broker

£150 m

£151 m

£605 m

GWP by product:

- Motor (private)

£251 m

£254 m

£948 m

- Home

£40 m

£45 m

£182 m

- Commercial inc. SME

£59 m

£54 m

£227 m

- Other

£12 m

£10 m

£37 m

Motor in-force policies

2.9 m

3.1 m

3.0 m

Total in-force policies

4.6 m

4.5 m

4.6 m

Life insurance and Heritage sales

3 months ended

31 March 2015

3 months ended

31 March 2014

12 months ended

31 December 2014

Life and Heritage overall (PVNBP(i))

£412 million

£346 million

£1.51 billion


£334 m

£290 m

£1,281 m

- Pensions

£185 m

£117 m

£636 m

- Annuities

£70 m

£115 m

£387 m

- Flexible guarantee bond

£61 m

£29 m

£153 m

- Equity release

£18 m

£29 m

£105 m


£75 m

£50 m

£217 m

Heritage Savings & Investments

£3 m

£6 m

£15 m

* The impact of changes in 2014 year end reporting assumptions on Protection PVNBP is an increase of £5 million for the three months ended 31 March 2014 and an increase of £20 million for the 12 months ended 31 December 2014. If this impact is allowed for the underlying increase in year-on-year Protection sales on a PVNBP basis is 36%.

Mike Rogers, LV= Group CEO commented: “In the first three months of the year our trading businesses have performed well with our life business reporting sales up 19% year-on-year and our general insurance business maintaining good premium levels.

“In general insurance, we have had a strong start to the year; whilst our premiums are at very similar levels to 2014 we have had lower than usual claims levels as a result of the benign weather. Year-on-year growth continues in SME, an area that presents a good opportunity for LV= with our focus on working in partnership with brokers. Our customer base continues to increase overall in non-motor lines and during the first three months of 2015 we have put through moderate price rises in motor and seen continued improvements in margins in this product line.

“Our life business has had a very successful first three months of the year with sales up 19% overall, with an increase of 15% in our retirement solutions business, and an underlying increase of 36% in our protection business.

“In our retirement solutions business we are seeing a change in buying behaviours, demonstrated by a 58% increase in pension sales and a 110% increase in flexible guarantee bond sales. The overall increase in retirement sales reflects the wide breadth of products that we now offer customers. In pensions, retirees are increasingly choosing income drawdown products and this is reflected in the decrease in annuity sales, which we expected following the Budget changes announced last year. Our flexible guarantee bonds are proving to be very popular with those approaching retirement, resulting in sales year-on-year more than doubling. Equity release sales have moved in line with annuities and are in line with our planned sales for 2015.

“In protection underlying sales are up 36% compared to 2014 driven by strong performance in both income protection and term assurance. We are the leading provider of individual income protection and we see further growth opportunities in this area.

“Our focus on looking after our customers is as important as ever and we remain the most recommended insurer in the UK according to YouGov. In summary I am pleased with the progress we have made so far in 2015. Our customer focused proposition, wide range of products, and strong brand means we are well placed for continued profitable growth.”

i) Present Value of New Business Premiums (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.

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