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LV reveals £96m in protection sales despite industry changes

by: Fiona Murphy
  • 08/09/2014
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LV reveals £96m in protection sales despite industry changes
LV has reported protection sales of £96m in the insurer's interim results for the six months ending 30 June 2014.

This represented a slight decline compared to H1 2013 when sales reached £97m.

In a statement accompanying the results, LV= said: “Protection sales are comparable to 2013 and we continue to be the number one provider for income protection policies sold through advisers, a further demonstration of the strength of the LV= brand, and our customer focused proposition.”

Myles Ryx, managing director of protection at LV, said: “It is a dip, we are a fraction down year-on-year. We saw a lot of dislocation in previous years from the Retail Distribution Review and gender-neutral changes. It would round in a different way but essentially we’ve written the same volume of business, written more value from that business, the profits of business are slightly up and the volume is flat.

“We would hope for a more benign period having our share of regulatory change and the retirement business this year having its share. The expectation would be that we would hope for no more significant regulatory impact and economy wise, a gentler recovery to the housing market would be good for the protection market and advisers.”

In April the insurer enhanced its critical illness cover and in June it launched a new personal sick pay policy.

Across the life and pension business underlying operating profit decreased to £7m (H1 2013: £11). LV said this reflected lower margins on enhanced annuities sales and increased sales of less profitable fixed term annuities.

Meanwhile it revealed a new business contribution of £6m (H1 2013: £5m).

On the protection market Richard Rowney, managing director of life and pensions at LV, said: “My view would be we would continue doing what we’ve done. Historically we are market leaders in the advised income protection space and we still see that as an area where we can to launch into new products and new channels.

“You will see us try to innovate and dominate in that space. In the protection market, we predict a small amount of growth next year, anything we can do to use our brand and work with advisers, we will push that forward. We will look for the propositions and channels as they emerge.”

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