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Catch up with the latest press releases from LV=

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LV= announces annual results for 2011

Press release: 03/04/2012

Mutual insurance, retirement and investment group LV= today announces its 2011 annual results.


2011 financial highlights:

  • Group underlying profit up 10% to £99.4m (2010: £90.7m)

  • Operating profit of £29.5m (2010: loss of £10.4m)

  • IFRS result after tax and before mutual bonus of £10.6m (2010: £21.3m)

  • Net-earned premiums up 28% to £2.1bn (2010: £1.65bn)

  • Group total assets up 13% to £10.3bn (2010: £9.1bn)

Mike Rogers, LV= Group Chief Executive, said: "LV= performed well in 2011 with underlying profits up. The final result shows the impact of turbulent investment markets and reserve strengthening. However despite this we were able to continue to deliver strong returns to our members. I am delighted to also confirm a mutual bonus of £18.6m for with-profit members representing an increase of 1% to the value of their policies."


Life and pensions business

  • Underlying profit up 20% to £33.7m (2010: £28.0m)

  • Sales up 15% at £142m on an APE [1] basis (2010: £124m)

  • Retirement business saw a 14% growth in sales with APE of £114.3m (2010: £100.3m)

  • Protection business saw a 18% increase in sales with APE of £28.0m (2010: £23.7m)

  • A £50 a month 25 year savings endowment policy maturing on 1 March 2012 paid out £44,108 (2011: £47,096)

General insurance business

  • Premium income grew by 23% to £1.46 billion (2010: £1.18bn)

  • Underlying profit more than doubled to £72.1m (2010: £30.7m)

  • The combined operating ratio (COR) improved by 6.5 percentage points to 97.7% from 104.2%

  • Return on capital employed (ROCE) increased to 12.9%

  • LV= is the UK's fourth largest car insurer with c.10% market share

Commenting on the trading business results, Mike Rogers said: "2011 was a successful year for both the trading businesses. General insurance had a very strong year seeing profits double and achieving a combined operating ratio of 97.7% against a backdrop of increased personal injury claims and associated legal costs. "

"The life business also achieved good results delivering a 20% increase in underlying profit and a 15% increase in sales. Our with-profits fund continues to perform strongly delivering market leading payouts [2] and a combined return of 40.9% over the last three years."

Commenting on LV='s expected performance in 2012, Mike Rogers said: "We believe 2012 will be a year of steady growth for LV=. We are now well established in our chosen markets and we plan to build on this over the coming years."

Notes to editors:

[1] Annual Premium Equivalent

[2] Table one

Actual Maturity Values

Product

Term years

Industry

LV=

Lower Quartile

Median

Upper Quartile

Endowment

15

10,324

11,057

12,009

12,603

20

17,168

19,144

21,756

24,283

25

29,350

32,435

36,052

46,521

Pension - regular

15

44,496

48,410

50,556

60,095

20

72,337

80,662

89,406

108,561

Endowment: Male aged 30 next birthday at outset, paying £50 a month premium, maturing on 01/02/2012

Pension: £200 a month contributions, maturing on 01/01/2012

Source: Money Management March 2012


About LV=

LV= employs 5000 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG.

Registered address: County Gates, Bournemouth BH1 2NF. www.LV.com.