Insurer LV= turns from loss into profit as it keeps costs under control

Insurance giant LV= said it had managed to get back into the black as it kept costs steady last year.

The former friendly society said it had seen pre-tax profit hit £107 million in the year to the end of December. The same figure had shown a pre-tax loss of £145 million the year before.

It helped the business return £30 million in bonuses to its members.

“Since 2011, we have shared member bonuses of £385 million, reflecting our commitment to driving the success of LV= so that it can be shared with our members,” said chief executive David Hynam.

He said that the company’s outlook “remains positive” and that it has “strong” foundations.

The chief executive said fixed term annuities – which pay a regular income in retirement for a specific time – have seen “greater demand” as interest rates remain high. That is “giving members the certainty they want in retirement”, he said.

He said: “Thanks to our robust business model and focused strategy, LV= has been profitable despite 2023’s many external headwinds including high inflation, rising interest rates and low growth.

“At the same time, we have shown strong cost disciplines and kept operating costs largely flat despite an external environment of significant inflation.”

Operating expenses were £109 million in 2023, up only slightly from £105 million in 2022.

Mr Hynam added: “Sustainability has been at the forefront of our work. In addition to our operations being carbon-negative since 2022, we’re committed to driving forward our sustainability strategy.

“This includes our transition to an exciting new primary asset manager, BlackRock, a market leader in sustainability and the largest asset manager in the world, with unparalleled investment capabilities.”

Last month BlackRock left Climate Action 100+, a group of investors which was set up to pressure the highly polluting companies they invest in to decarbonise.