Sales reached an APE of £29m, a decrease from £32m in 2012.
The insurer attributed this gap to an artificial jump in business during 2012 due to the gender directive.
Across the life and pensions business, underlying business operating profit was up 12% to £29m, compared to its 2012 results where underlying profit reached £26m.
In a statement, LV= said that although overall sales in protection new business contributions were lower than 2012, “we are pleased with overall performance and the new business contribution of £2m, taking into account the adverse market conditions as a result of the tax changes and gender rules.”
Richard Rowney, managing director of life and pensions business at LV= said: “When you look at the results, the whole market had a drop off. There was an acceleration of business in 2012 because of gender, we didn’t have that same pipeline going into 2013.
“Generally the protection market is generally flat. We were anticipating that being the case in terms of our plans. What was core for us is how we do compared to the rest of the market and growing our market share.
Rowney added: “In income protection, we are still the number 1 provider. It’s one of those years where you look not necessarily on the growth, but how you did compared to the rest of the market.”
Mark Jones, head of protection at LV= also said the insurer’s Sick Pay Insurance product, launched last year, had received a positive response from the market.
He added: “we are investigating wider routes within the market on how to get [income protection] to a wider consumer base.”
However, across the LV= business as a whole, there was a 51% increase in pre- tax profits to £156m (2012: £103 million). Group operating profit increased by 19% to £105 million (2012: £88 million)
The results also revealed that LV= was Britain’s most recommended insurer according to YouGov’s BrandIndex.
Rowney concluded: “For us we concentrate more on managing the business and profitability, so we are pleased with how the profits have increased in the life and pensions business.
“Overall for the group, they are a cracking set of results. The overall financial strength of the group; the fact we keep increasing our profits year on year is a very good position to be in. Advisers and customers are looking more and more to that wider financial strength.”
