LV= ANNOUNCES 2024 FINANCIAL RESULTS
LV= ANNOUNCES 2024 FINANCIAL RESULTS
A positive set of results underline that LV's focused business strategy
and strong leadership delivers for members
Investment, protection, retirement and in-house advice specialist LV= announces its financial results for the year to 31 December 2024 and publishes its Annual Report (LV.com/annual-report).
Key financial and operational highlights:
● LV's member-first philosophy delivers member bonuses of £29 million to 280,000 eligible members, totalling £414 million since 2011.
● A 57% increase in operating capital generation from LV's trading businesses to £55 million (FY 2023: £35m).
● Continued robust capital position with a Capital Coverage Ratio (CCR) of 192%.
● Strong growth in Protection resulted in a year-on-year sales increase of 12% and Equity Release mortgage advances increased positively.
● Overall, new business sales on a Present Value of New Business Premiums (PVNBP) basis grew by 4% to £1,229 million (FY 2023: £1,187m).
● Strong returns generated across the Smoothed Managed Fund range, including a 12.5% return over 2024 on the Balanced Fund.
● A continued focus on cost efficiencies saw operating expenses reduce by 4% to £244 million (FY 2023: £255m).
● The expansion of LV= Platform Services increased adviser access to LV= Smoothed Managed Funds.
● Service enhancements saw improved customer and adviser experiences and feedback.
● External awards and accreditations recognised LV's products, customer experience, delivery and culture.
David Hynam, LV= Chief Executive, said:
"As a mutual, members come first. Since 2011, we've shared a total of £414 million in member bonuses, of which £29 million will be distributed to 280,000 eligible members as a result of our 2024 results.
"Our results show that our focused business strategy is delivering and returning value for members. Our Capital Coverage Ratio of 192% and increase in operating capital generation of 57% to £55 million, underscores the financial strength of the business and highlights our robust capital position.
"I am also pleased to highlight a positive year in terms of driving down operating expenses by 4%. Members will appreciate that we are not only returning profits to them in the form of the member bonus, but we are also running the business efficiently on their behalf.
"Our financial performance is a result of our forward-looking strategic approach and points to the significant benefit of our diversified portfolio, which includes award-winning products, services and advice. We've seen positive sales growth across protection and equity release, and strong investment performance from our Smoothed Managed Fund range.
"The strength of the LV= brand continues, together with its recognition as one of the most recommended in the UK. Our focus is on its growth and the future success it presents for our members. We look forward to exploring further brand partnership opportunities at the end of the general insurance brand agreement with Allianz which commenced in 2017.
"We are well positioned to further enhance investment and financial performance. We remain steadfastly committed to doing the right things for our members, customers and advisers, and continuing to deliver for this and future generations to come."
Financial highlights:
|
|
FY 2024 |
FY 2023 |
Change (%) |
|
New business sales (PVNBP basis) |
£1,229 million |
£1,187 million |
4% |
|
- Savings and Retirement |
£831 million |
£831 million |
0% |
|
- Protection |
£398 million |
£356 million |
12% |
|
Member bonuses |
£29 million |
£30 million |
(3)% |
|
Operating expenses |
£244 million |
£255 million |
(4)% |
|
Operating profit |
£43 million |
£43 million |
0% |
|
Profit before tax |
£51 million |
£107 million |
(52)% |
|
Capital metrics |
|
|
|
|
Operating capital generationi |
£55 million |
£35 million |
57% |
|
Capital surplusii |
£411 million |
£469 million |
(12)% |
|
Capital Coverage Ratioiii |
192% |
204% |
(12)% |
With a focused business strategy and balanced portfolio, LV= continues to deliver impactful results.
Overall, new business sales on a Present Value of New Business Premiums (PVNBP) basis grew by 4% to £1,229 million (FY 2023: £1,187m). Protection sales increased by 12% year-on-year, with PVNBP reaching £398 million in 2024 (FY 2023: £356m). Savings and Retirement sales remained stable at £831 million and there was positive growth for equity release sales.
The LV= Smoothed Managed Fund range, supported by LV's primary asset manager BlackRock, delivered strong returns, including a 12.5% return over 2024 on the Balanced Fund.
LV's member-first philosophy guides everything it does. When the business succeeds, its members benefit directly through member bonuses. £29 million of bonuses were shared with 280,000 eligible members, totalling £414 million since 2011.
The business has a strong financial position, reflected in a Capital Coverage Ratio of 192% (FY 2023: 204%) and a capital surplus of £411 million (FY 2023: £469m), ensuring it's well-positioned for continued growth. Additionally, the year-on-year increase in operating capital generation to £55 million (FY 2023: £35m), coupled with robust cost management further strengthens LV's foundations for the future.
LV= is committed to providing excellent experiences for members, customers and advisers and this is evidenced by continuous service enhancements, including expanding digital capabilities and streamlined processes. New online features and more ways to get in touch, provides even better accessibility. The continued roll out of LV= Platform Services ensures LV= remains easy to do business with and positions the company for continued future success.
LV's sustained investment in member engagement, including the LV= Member Community, demonstrates its commitment to giving members a say in how the business operates.
These efforts, along with LV's reduction in operating expenses to £244 million (FY 2023: £255m) underlines its focus on innovation, robust operational efficiency and delivering brilliant outcomes for members.
External awards and accreditations recognised LV's products, customer experience, delivery and culture. Accolades include The Times Money Mentor Awards for Best Pensions Drawdown Provider and the Moneyfacts Best Income Protection Provider. Awards were also received for customer service delivery as well as for its commitment to colleague experience and inclusion.
LV= reported a profit before tax of £51 million (2023: £107m). This year-on-year decrease is driven by the one-off favourable impact from Solvency UK reforms improving the 2023 result by £85 million. Operating profit year-on-year remained stable at £43 million (FY 2023: £43m).
LV= remains committed to sustainability and responsible business practices. It has reported on the work done across 2024 in its latest Sustainability Report, which can be accessed at LV.com/lvcares.
Looking ahead, LV= is focused on delivering excellence through its products, services and advice and will continue to create great experiences for members, customers and advisers.
- Ends -
For further information, please contact:
Pressoffice@lv.com, 07850 448 408
Notes to editors:
These numbers are unaudited.
i, ii, iii The Solvency II capital metrics reported in this press release are based on the estimate of the year end results as at 26 March 2025. It is possible that the capital position will be adjusted prior to the publication of the group's Solvency and Financial Condition Report later in 2025.
Certain statements in this press release may constitute "forward-looking statements". These statements reflect the Issuer's expectations and are subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. The Issuer disclaims any obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law.
About LV=
LV= is one of the UK's leading life and pensions mutual insurers, serving over one million members and customers. As an investment, protection and retirement specialist, LV= offers a range of products, services and advice to help members and customers protect their income while they're working and maximise it when they stop.
With effect from 18 December 2023 (the "Substitution Date"), LV Bonds plc, a wholly-owned subsidiary of Liverpool Victoria Financial Services Limited was substituted in place of Liverpool Victoria Financial Services Limited as the principal debtor in respect of the GBP 350,000,000 6.50 per cent. Fixed Rate Reset Subordinated Notes callable 2023 due 2043 (ISIN: XS0935312057).
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.
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