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Catch up with the latest press releases from LV=

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LV= 2013 trading statement

Press release: 03/02/2014

Mutual insurance, retirement and investment group LV= issues its trading statement for the 12 month period from 1 January to 31 December 2013.

General insurance sales

General insurance sales

12 months ended
31 December 2013

12 months ended
31 December 2012

Gross Written Premium (GWP)

£1.45 billion

£1.49 billion

GWP by channel:

- Direct

£824 million

£830 million

- Broker

£621 million

£655 million

GWP by product:

- Motor (private)

£1,054 million

£1,143 million

- Home

£155 million

£146 million

- Commercial inc. SME

£201 million

£164 million

- Other

£35 million

£32 million

Motor in-force policies

3.1 million

3.0 million

Total in-force policies

4.4 million

4.1 million


Life and Heritage business sales

Life and Heritage business sales

12 months ended
31 December 2013

12 months ended
31 December 2012

Life and Heritage overall (APE)

£161 million

£164 million

Retirement

- Pensions

£66 million

£56 million

- Annuities

£46 million

£60 million

- Equity release

£9 million

£9 million

Protection

£29 million

£32 million

Savings & Investments*

£11 million

£7 million

APE = annual premium equivalent

* Heritage which is our with-profits business. Predominantly savings and investments.


Mike Rogers, LV= Group CEO commented:

"Despite a tough trading environment, sales for LV= have been robust over the course of 2013.

"In general insurance, our strategy of offering competitively priced products underpinned by excellent customer service is working well and we are pleased that we continued to see renewal rates of 80% on our direct motor and home products. Although premiums are slightly lower than 2012, this reflects a decrease in motor rates rather than in our customer base as we have actually increased our total in-force policies by over 270,000 during 2013. We have continued to grow our SME and home businesses both in relation to GWP and customer numbers and overall we expect to report an improved underwriting result for the year compared to 2012.

"Looking forward we expect rates in motor insurance to recover during 2014 as we believe any reduction in claims as a result of the LASPO legislation may have been over anticipated by certain segments of the market.

"Our life business has been resilient despite turbulent market conditions. The retirement division saw strong growth in pension sales. In annuities we controlled volumes to maintain margins in the first half of the year. However in the second half of the year sales were strong, 17% higher than the same period in 2012 and 59% higher than in the first half of 2013.

"In protection, our performance has been good taking into account the adverse market conditions as a result of the tax changes and gender rules. We continue to be the number one income protection provider of choice for IFAs and during the year we launched a new direct product to appeal to those consumers who would not have previously considered protecting their income.

"Overall within the life business we expect to report an improved underlying operating profit for 2013 compared to 2012.

We are continuing to build a compelling and diverse business with strong long-term prospects and I am confident that we will report good returns for our members for 2013 when we release our full results on 31 March 2014."

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For further information please contact:

Emma Banks, 0208 256 6714, 07894 158605, emma.banks@lv.com


Notes

LV= employs over 5,700 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 trade unions.