LV's premium income surges 37%

LV's premium income surged 37% to £546.4m for the first half of this year (H1 2010).

The mutual posted a significant increase compared to £397.5m for the same period last year (H1 2009). LV improved its combined operating ratio to 101.9% (H1 2009: 103.8%).

A spokesman said LV did not include profits in half-year results becasue it was a mutual. Last year, LV posted a £7m profit compared to a £30m loss in 2008.

LV said it was now the fourth largest motor insurer in the UK. General Insurance managing director John O'Roarke said the insurer bucked the market, which has suffered from rising costs in motor accident claims, because of its 'precision in risk pricing'.

O’Roarke said: “The results in our general insurance business are better than those experienced by the market as a whole. I believe this is due to our precision in risk-pricing and a determination to address claims fraud and exaggeration which would otherwise push up premium rates for honest customers.

“Our reputation for consistently good customer service has also helped us enormously to win and retain new customers.”

Mike Rogers, group chief executive, said: "In general insurance, both the direct and broker channels performed strongly. We have taken the opportunity in current market conditions to combine increased rates with growth in business volumes and this has driven profitability.”

General Insurance

General insurance GWP (Gross Written Premiums) up 37% to £546.4m (H1 2009: £397.5m), this includes:

• Direct new business GWP up by 39% to £85.0m (H1 2009: £61.3m)
• Direct business up 20% to £245.8m (H1 2009: £204.4m)
• Broker business up 56% to £300.6m (H1 2009: £193.1m)
• Combined operating ratio improved to 101.9% (H1 2009:103.8%)
• LV= now fourth biggest private car insurer (according to FSA returns 2009)