UK insurer LV= has revealed that it turned over an operating profit of £158 million in 2017 – despite making a loss of £12 million in 2016.
Group Chief Executive Richard Rowley said 2017 had been ‘transformative’ for the company, attributing the turnaround in performance to the Ogden rate change and positive contributions from both the general insurance and life businesses. “We secured a landmark strategic partnership with Allianz,” he continued, “delivered the first stages of our £100-million investment to transform our general insurance product and distribution capability, and brought together our protection, retirement and heritage business areas under a single leadership as we begin to evolve life into a broader health, wealth, and knowledge business.”
The mutual insurer posted a pre-tax profit of £122 million, up from a loss of £49 million in 2016; general insurance gross written premiums of £1.60 billion, up from £1.58 billion; general insurance operating profit of £121 million, up from £113 million pre-Ogden and a loss of £26 million post-Ogden; new life business sales of £2.02 billion, up from £1.85 billion; and life operating profit of £37 million, up from £13 million.
“This time last year I said that we were working to get the group back within its capital risk appetite and we have done this,” concluded Rowley.