Group results bolstered by strong GI performance

engaged investor gold pot coins

LV=’s customers will share a £20.9m bonus pot after the insurer announced healthy group results yesterday.

The group underlying operating profit was up 19% to £126.2m, from £105.8m in 2011.

LV= group chief executive Mike Rogers said: “These results for 2012 show a 19% increase in underlying operating profit which is an excellent achievement and makes 2012 our fifth successive year of growth and increased underlying profits.

“As a result of our performance, I am delighted to confirm a mutual bonus of £20.9m. This will be added to eligible with-profit members’ policies on payout.”

The group results were boosted by the performance of LV=’s general insurance arm.

In February, LV= General Insurance recorded an operating profit of £117m, up 54% on the £76m it made in 2011.

The insurer’s combined operating ratio increased by two percentage points to 99.7% (2011: 97.7%), with underwriting profits of £5m, down from £30m in 2011. The company attributed the fall to claims arising from adverse weather conditions and an increase in personal injury claims frequency.