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57% increase in trading profit for LV='s life and pensions business
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Annual premium equivalent (APE) sales up 34% on 2009
Mutual insurance, retirement and investment group LV= has announced a strong performance in 2010 with its life business sales and trading profits significantly up on 2009.
LV= Life and pensions
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Trading profit of £34.7m, a 57% increase (2009: £22.1m) driven by sales of £124m on an APE[i] basis (2009: £92.2m), a 34% increase on 2009
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Retirement business saw a 35% growth in sales with APE of £94.6m (2009: £70.0m)
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Protection and savings businesses up 32% with APE of £29.4m (2009: £22.2m)
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A £50 a month 25 year savings endowment policy maturing on 1 March 2011 paid out £47,096, an annual yield of 8.2%. This is significantly higher than the equivalent payouts announced by other major providers this year (see table one).
Commenting on the life business results Richard Rowney, LV= Life and Pensions Managing Director, said: "Sales are up across the board on pensions, annuities, protection and equity release in 2010 and we have seen a 57% increase in the division's profit. Our new protected retirement plan (PRP) product launch in February 2010 was a big driver behind our annuities success with significant sales of £8.4m APE in its first year."
"Our strong performance in 2010 was also driven by competitive pricing, improved awareness and penetration, and a strong reputation for quality products. Profitability in the life business was enhanced by improved cost control and by our development of new IFA accounts. For instance, in November 2010, we were delighted to win a position on the protection panel of Sesame Bankhall, the largest distributor of protection business in the UK.
"Our strategy to focus on areas of expertise in selected risk-based products continues to differentiate us in an increasingly competitive market."
Performance by product:
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Annuities (Enhanced, With-Profit and Protected Retirement Plan): 76% increase with APE £44m (2009: £25m)
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Pensions: 10% increase with APE £41.6m (2009: £37.7m)
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Protection: 34% increase with APE £23.7m (2009: £17.7m)
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Equity Release: 23% increase with APE £9m (2009: £7.3m)
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Savings & Investment: 27% increase with APE £5.7m (2009: £4.5m)
These results further consolidate already strong and growing market shares in our retirement solutions and specialist protection businesses
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