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Mutual bonus scheme

Rewarding our members

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Rewarding our members

LV= is a mutual insurer which means we're owned by our 1.1m members. The mutual bonus scheme is designed to reward eligible members for their ownership of LV= and the risks taken in supporting the establishment and growth of our trading businesses in life and general insurance.

At present only members with with-profits policies invested in the Liverpool Victoria Friendly Society (LVFS) with-profits fund are eligible for a mutual bonus, but this may not always be the case. The mutual bonus is not a guaranteed benefit and is at the discretion of the LV= board.

Why pay a mutual bonus?

LV= has been through a major turnaround in the last few years, witnessing significant growth in the number of policyholders, employees and profits. We believe the business will continue to grow and go from strength to strength. Because of this and our continuing financial strength we have announced a mutual bonus for the fifth year running. Our key financial figures for 2015 were:

  • Underlying operating profit of £195 million.
  • Capital resources as at 31 December 2015 were £1.4 billion.

2015 mutual bonus £27 million

Our fifth mutual bonus declaration of £27 million was based on the financial performance of the LV= group for 2015. As a result policyholders benefit from a further 1.0% mutual bonus uplift within their with-profits payouts.

It will typically add £100 to an eligible with-profits policy currently worth £10,000 and will ordinarily form part of the amount payable when the policy matures or is cashed in (eligible annuitants will receive an increase in their income). It will be on top of the existing regular and final bonuses which our with-profits members already receive.

Here is a summary of our mutual bonus declarations.

Mutual bonus declaration

Uplift to payouts
















Currently the mutual bonus is used to increase the value of with-profits policies that are invested in the LVFS with-profits fund. The funds from policies that we acquired from the Royal National Pension Fund for Nurses (RNPFN) in 2001 are not invested in the LVFS with-profits fund, so these members are not included in the mutual bonus scheme.

LV=, County Gates, Bournemouth, BH1 2NF, UK