Beast from the east hits LV= profits

Ryan Bembridge

August 7, 2018

LV= made £42m of operating profit in the first half of 2018, down from £56m in the first half of last year – a reduction it blamed on the cold snap between February and March this year.

However the insurer wrote more general insurance premiums, increasing from £817m in H1 2017 to £827m in H1 2018.

Richard Rowney, LV= group chief executive, said: “We have made steady progress in the first six months of the year with good underlying trading results partially masked by the impact of the ‘Beast from the East’ bringing severe weather across the UK in February and March.

“Tackling competitive trading conditions and a significant change agenda, the business continues to perform well with top-line growth in general insurance and increased profits in Life.”

In Life & Group LV- increased operating profit by £19m, however new business sales fell by 5% from £1.035bn last year to £983m this year.

Andy Parsons, LV= group finance director, said: “Overall operating profit of £42m (HY 2017: £56m) includes an encouraging £12m increase in life and group operating profits, partly offsetting the £26m reduction in the general insurance result due to the bad weather in Q1.

“Life and Group operating profits of £19m included £14m of new business contribution and £19m from model and basis changes, offset by strategic investment spend of £15m.”

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