Bosses at LV= have said the mutual is “not immune” to economic challenges, after revealing profits from its savings and retirement division halved last year, as it sank deeper into the red.
The insurance and retirement specialist, formerly known as Liverpool Victoria, said it made a loss of £265m before tax and member bonuses in 2022, compared with a loss of £66m in 2021.
The Bournemouth-headquarted company also saw its overall trading profit dip compared with the previous year as it faced volatility in the financial markets, which affects investments.
Sales in its pensions products and smoothed managed funds – a pension scheme aimed at reducing investment volatility – in particular suffered a decline as a result of difficult economic conditions, the company said.
The firm saw a 55% decline in the trading profit of its savings and retirement division, falling to £10m from £22m a year earlier.
Nevertheless, sales of annuities surged by more than 90%, equity release jumped by a fifth, and protection products increased by nearly a tenth. Overall trading profit dipped by just 3% to £28m from £29m in 2021.
Chief executive David Hynam said: “High inflation, rising interest rates and low growth are posing challenges for businesses and consumers alike. We are not immune to this and we know that our members will be no less affected, not least by the rising cost of living.
“Despite these challenges, and as a result of our focused business strategy, the outlook for LV= remains positive. Despite difficult market conditions, we have traded well with our protection, equity release and annuities products all exceeding their 2021 sales levels.
Mr Hynam joined the group from Bupa in September, replacing former boss Mark Hartigan, who left after a £530m sale of the 180-year-old firm to US private equity firm Bain Capital fell through, after not enough policyholders voted to back the deal.
The company has since remained a mutual, and revealed it shared £35m in bonuses to its eligible members last year.
Read next:
- Gas company Perenco to investigate Poole Harbour oil leak
- Tom Gozney - from ‘professional alcoholic’ to building $100m pizza oven business
- Dorset port set for expansion after securing largest investment in its history
- Telecoms equipment firm 4Com expands with fourth deal in 10 months
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
