LV= saw protection sales increase by12% year-on-year, according to financial results for the year to 31 December 2024.
The mutual’s annual report reveals overall, new business sales on a present value of new business premiums (PVNBP) basis rose 4% to £1,229m from £1,187m in 2023.
However, profit before tax more than halved – dropping from £107m in 2023 to £51m.
But protection PVNBP reached £398m in 2024, up from £356m in 2023. Savings and retirement sales remained stable at £831 million and there was positive growth for equity release sales.
The results also revealed 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.
Over the year £29m of bonuses were shared with 280,000 eligible members, totalling £414m since 2011.
The business reported a capital coverage ratio of 192% (FY 2023: 204%) and a capital surplus of £411m, up from £469m in 2023.
LV= added the year-on-year increase in operating capital generation to £55m from £35m in 2023, coupled with “robust cost management further strengthens LV’s foundations for the future”.
The mutual further noted its efforts to add service enhancements and invest in member engagement which the mutual said combined with its reduction in operating expenses to £244m from £255m in 2023.
LV= reported a profit before tax of £51m, down from £107m in 2023.
It attributed the year-on-year decrease to the one-off favourable impact from Solvency UK reforms improving the 2023 result by £85m. Operating profit year-on-year remained stable at £43m, unchanged from the previous year.
David Hynam, CEO at LV=, (pictured) 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.”
