LV Announces Strong Performance in First Half of 2010By Lv, PRNE
Monday, September 13, 2010
CROYDON, England, September 14, 2010 - LV=, the mutual insurance, retirement and investment group, has announced
a strong performance in the first half of 2010, with sales and trading
profits significantly up on the same period of 2009.
Life cover (www.lv.com/lifeinsurance/) sales are up 40% to
GBP63.5m on an APE (Annual Premium Equivalent) basis, compared to GBP45.2m in
the first half of 2009. This includes retirement business seeing a 36%
increase with an APE of GBP48.3 (H1 2009: GBP35.4m) while protection and
savings businesses saw a 55% increase with an APE of GBP15.2m (H1 2009:
General insurance (www.lv.com/insurance/) GWP (Gross Written
Premiums) were up 37% to GBP546.4m (H1 2009: GBP397.5m), this includes
including new business GWP up by 39% to GBP85.0m (H1 2009: GBP61.3m). The
results also confirm that LV= is now fourth biggest private car insurer
(www.lv.com/insurance/car_Insurance/) (according to FSA returns 2009).
In asset management (LVAM), investment performance shows continued strong
outperformance against benchmark for the with-profits portfolio. 85% of
eligible funds are ranked in the first or second quartile of their peer
groups for performance in the first six months of 2010 while H1 2010 sales
exceed the total for 2009 (excluding third party institutional sales).
Mike Rogers, LV= (www.lv.com/) group chief executive, commented:
"Although the market environment remains challenging, our focus has paid off
enabling us to continue to grow profitably across the LV= Group. Our trading
performance in terms of both sales and profitability was significantly up on
the same period last year.
"In the life business, pensions and annuities spearheaded a strong
performance, driven partly by legislation change moving the retirement age
from 50 to 55. Profitability in life was also enhanced by improved cost
control and by our development of new IFA accounts.
"In general insurance, both the direct and broker channels performed
strongly. We have taken the opportunity in current market conditions to
combine increased rates with growth in business volumes and this has driven
"Investment performance for our with-profits policyholders was ahead of
benchmark. In addition, our development of a strong retail fund management
franchise continues successfully, boosted by the significant increase in
Standard & Poor's and Citywire ratings achieved for our funds and fund
"Market conditions in the second half of 2010 remain challenging but we
expect our market focus and cost control will continue to deliver trading
profit growth in the second half."
Notes to editors:
APE = Annual Premium Equivalent
This is a measure comprising new regular premium sales plus 10 per cent
of single premiums.
GWP = Gross Written Premiums
These represent the revenue (premiums) expected to be received over the
life of a general insurance contract.
LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria
Friendly Society Limited (LVFS) and LV= and LV= Liverpool Victoria are
trading styles of the LVFS group of companies.
LV= offer a range of insurance products including home insurance
(www.lv.com/insurance/home_insurance/), car insurance, life insurance,
pet insurance and over 50 life insurance.
LV= employs over 4,000 people and serves more than 3.8m members and
customers. LV= is the UK's largest friendly society and a leading mutual
financial services provider.
LVFS is authorised and regulated by the Financial Services Authority and
entered on the Financial Services Authority Register No. 110035. LVFS is a
member of the ABI, AFM, and ILAG. Registered address: County Gates,
Bournemouth BH1 2NF.
PR Contact: Emma Banks 69 Park Lane Croydon CR9 1BG +44(0)208-256-6714 www.lv.com
PR Contact: Emma Banks, 69 Park Lane, Croydon, CR9 1BG. +44(0)208-256-6714.
Tags: Croydon, England, Lv=, September 14, United Kingdom