Mutual LV scores profits turnaround
Mutual insurer Liverpool Victoria today said annual profits had more than doubled after strong sales and acquisitions helped it ride out volatile markets.
How's that?: County cricket sponsor LV= scored with strong results.
The group, which trades as LV and has 3.2m members and customers, saw operating profits jump 128% to £62.8m in 2008.
The turnaround comes just two years after the mutual posted losses. The group has pulled out of banking to focus on the general insurance market.
Chief executive Mike Rogers said the firm had no direct exposure to the collapse of the Icelandic banking system or sub-prime mortgages.
He added: 'rading has started well in 2009, with sales in the first two months strongly ahead of the same period last year, although investment markets remained volatile.'
LV 's life insurance arm was helped by its 2007 acquisition of reinsurer Swiss Re's retirement solutions business, driving an 83% growth in new business income.
Its £150m takeover of Highway Insurance, the owner of broker Hero, will also push it into the UK's top-five biggest car insurers by 2012.
The group has meanwhile benefited from tie-ups with building society Nationwide on travel and car insurance. Gross premiums were up 38% to £917m over the year.
The Bournemouth-based mutual also said it had retained its financial buffers despite the turbulence in global markets. The group currently holds more than twice the level of capital surplus required.
LV has managed to absorb short-term investment hits - which pushed it to a bottom-line loss of £202m - to retain significant shares in long-term growth assets, benefiting its members over a longer horizon.
Mr Rogers added: 'Throughout a turbulent year our single-minded focus on helping our members and customers to look after what they love has held us in good stead.'
The mutual began life in 1843 as Liverpool Victoria but changed its brand to LV in 2007. It now employs more than 3,800 people and manages around £7bn on their behalf.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mini Cooper SE: The British icon gets an all-electric makeover
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mail Online takes a tour of Gatwick's modern EV charging station
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Millions kept in the dark over City watchdog's mystery...
- Ford boss says it may restrict petrol models in the UK to...
- Spring property bounce is a damp squib - Rics estate...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- Hedge fund tycoon's £34m silver salvage claim sunk at the...
- Watches of Switzerland buys Italy's Roberto Coin for £104m
- Oil industry engineer Wood Group rejects £1.4bn Dubai...
- MARKET REPORT: IAG leads Footsie higher as airline shares...
- BAE Systems tools-up for growth as Britain plots defence...
- TSB to close one in six branches: More than 6,000 shut by...
- Snoop Dogg cannabis firm to ditch London after losing 97%...
- Avon Protection handed £38m gas mask contract by MoD
- Bank of England holds rates at 5.25% AGAIN - what it...
- Investors pull cash out of UK equity funds for the 35th...
- Controversial Brewdog founder James Watt steps downs
- We do need to resolve inequality admits £8m-a-year...
- Drivers abandon Direct Line after insurance premium hikes
- Don't ditch name and shame plan - it has the City running...