LV= and LV= GI publish 2019 financials

Written by Adam Cadle

19/03/2020

Mutual life pensions and investments group, LV=, has reported a swing in profit before tax from continuing operations figure of £15m for FY 2019, from a £90m loss in FY 2018, reflecting adverse reserving changes of £67m (FY 2018: £10m favourable) and favourable short-term investment fluctuations of £129m (FY 2018: £66m adverse).

In 2019, LV= agreed to sell its residual 30.1% stake in LV=GI to Allianz Group for up to £365m.

The group’s SII capital coverage ratio was up from 172% for FY2018 to 244% in the latest annual report.

“Clearly we are living in unprecedented times; the coronavirus situation is both very serious and rapidly evolving,” noted LV= chief executive Mark Hartigan. “Our priority remains to focus on the best outcomes possible for our members, customers, and staff.

“Notwithstanding the challenging external environment, this is an exciting time to be joining having just converted from a friendly society to a company limited by guarantee and successfully completed the sale of our general insurance business.”

LV= GI also announced its financial results today for the year to 31 December 2019. Gross written premiums were up 12% to £1.57bn and investment returns were recorded at £32.6m, significantly higher than the £8.3m figure recorded last year, with 2018 impacted by market movements on hedges protecting the SII balance sheet.

Operating profits fell by 13% from £107m in 2018 to £93m.

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