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LV= reports 77% equity release sales growth – results

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  • 21/03/2019
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LV= reports 77% equity release sales growth – results
Mutual insurance, retirement and investment group LV= has recorded an increase in equity release sales up 77 per cent to £211m in 2018, against £119m the previous year.

 

The mutual insurer has planned to convert to a company limited by guarantee.

This change will be subject to a vote among LV= members at a special general meeting on 22 May.

The proposed change to a company limited by guarantee would result in LV= being governed by the Companies Act rather than the Friendly Societies Act, but this will not change the company’s mutual status.

The company is also on track to complete the operational separation of the general insurance business ahead of plan.

 

Financial highlights

Operating capital generation fell to £89m from £159m in 2017, whilst operating profit stood at £136m, slightly up from £134m in 2017.

Profit before tax for the group fell to £20m from £122m due to investment losses, the company said.

Richard Rowney, LV= group chief executive, said that 2018 has been all about putting the foundations in place from which to build a sustainable future.

“Our capital position continues to be strong and our Capital Coverage Ratio stands at a healthy 172 per cent with positive contributions from both trading businesses.

“Converting to a company limited by guarantee provides the foundations from which to build on our heritage and strong brand to create a better mutual for the future, where being a member has more meaningful benefits.

“This year will be another important year for LV= as we complete the second phase of the transaction with Allianz, through which it will take a controlling stake in our General Insurance business.”

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