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LV= new business protection sales come to £356m in 2023

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  • 22/03/2024
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LV= new business protection sales come to £356m in 2023
LV=’s new business sales for protection came to £356m in 2023, a 13 per cent fall on 2022 figures.

According to its latest financial report, overall new business sales, which are on a present value of new business premiums basis, came to £1.2bn, a 21 per increase on the prior year. This includes £831m of savings and retirement, which is a 24 per cent fall on 2022 figures.

LV= said that it arranged equity release mortgage advances of £40m, which is a decrease from £242m in 2022. The company said that equity release products were “not actively marketed for much of the year”.

The report said that its protection business reported a trading profit of £30m, which is a 50 per cent increase on the prior year figures.

The firm reported an overall profit before tax of £107m, which compares to a £145m loss before tax in 2022.

David Hynam, LV=’s chief executive, said that its “robust business model and focused strategy” meant LV= had been profitable despite “many external headwinds, including high inflation, rising interest rates and low growth”.

He noted that its performance had allowed it to return £30m to eligible members in the form of member bonuses.

Hynam said that the “outlook for LV= remains positive, and the business’ foundations are strong”.

“We have continued to evolve and develop the business in line with our strengths and core values, and I am pleased to say that our diversified business model meant we outperformed in sales across our protection products and annuities,” he added.

Hynam said that it had expanded its equity release offering with a new range backed by Scottish Widows, and it had also kept overall operating costs flat “despite an external environment of significant inflation”.

He continued: “Sustainability has been at the forefront of our work. In addition to our operations being carbon-negative since 2022, we’re committed to driving forward our sustainability strategy. This includes our transition to an exciting new primary asset manager, BlackRock, a market leader in sustainability and the largest asset manager in the world, with unparalleled investment capabilities.

“My focus going forward is to drive LV=’s performance and delivery as a high-performing, best-in-class mutual that gives great returns to members alongside striving for excellent customer service.

“As a result of our focused business strategy, we have returned a profit this year. LV= members can be confident that we are driving progress and our foundations remain strong.”

Last year, the company released a new range of equity release products.

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