LV= profit hit by bad weather

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Insurance

UK insurer LV= has said that bad weather – including Storm Eleanor and the ‘Beast from the East’ resulted in its lower general insurance figures for the start of 2018. It saw its general insurance operating profit go from £49 million for the first half of 2017, to £23 million in2018 – a drop of 53 per cent.

“General Insurance business was adversely impacted by severe weather at the start of the year which resulted in £17 million of net claims leading to an operating profit of £23 million for the first six months,” Richard Rowney, LV= Group Chief Executive, said. “The underlying business continues to perform well with top line growth in both our Direct and Broker personal lines businesses.”

As a whole group, LV= reported a decrease in overall operating profit, from £56 million in the first half of 2017, to £42 million in the first half of 2018. However, the company’s life and pensions division more than picked up the slack, posting a 171-per-cent rise in operating profits, rising from £7 million in 2017, to £19 million this year.

“We have made steady progress in the first six months of the year with good underlying trading results partially masked by the impact of the ‘Beast from the East’ bringing severe weather across the UK in February and March,” added Rowney. “Tackling competitive trading conditions and a significant change agenda, the business continues to perform well with top-line growth in General Insurance and increased profits in Life.