UK pension changes prove positive for insurance group LV as half year profit jumps

Insurance group LV reported a 103 per cent jump in operating profit during the first half of the year, a period in which the firm said it had altered its offering to suit changing customer needs.

 

Group operating profit was up to £79m in the six months to 30 June, from £39m in the same period of last year. Net earned premiums remained unchanged at £1.1bn.

 

LV’s general insurance division improved its combined ratio to 92.1 per cent from 96.9 per cent.

 

In its life business, the firm swung from a loss of £5m in 2014 back to an operating profit of £12m. 

 

The group said the impact of the 2014 Budget had led to a change in buying behaviours “with more pension savers shopping around for retirement income solutions”, which helped push sales in the retirement arm up by £95m compared to the first half of 2014.

 

“We are a financially strong mutual with a well-known brand and our composite model means we are well positioned for the future with growth opportunities in both our trading businesses,” said chief executive Mike Rogers.