REG - LV= LV Bonds PLC - LV= ANNOUNCES 2025 FINANCIAL RESULTS

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RNS Number : 4263Y  LV=  27 March 2026

 

 

LV= ANNOUNCES 2025 FINANCIAL RESULTS

LV= has maintained a strong capital position, delivered positive
investment performance and shared £100 million with members. LV's 2025
results underline that its focused business strategy continues to deliver
for members.

Investment, protection, retirement and in-house advice specialist LV=
announces its financial results for the year to 31 December 2025 and publishes
its Annual Report
(https://www.lv.com/about-us/company-information/annual-report) .

 

Key financial and operational highlights:

·    LV's member-first philosophy delivers member bonuses* of £100
million to 250,000 eligible member policies. This amount, the largest in LV's
history, includes £80 million in respect of a final distribution of proceeds
from the sale of the General Insurance business. Since 2011, £513 million of
member bonuses have been shared with eligible members.

·    Ongoing financial strength with a Capital Coverage Ratio (CCR) of
202% (FY 2024: 192%) and Solvency II capital surplus of £370 million (FY
2024: £411m).

·    Strong investment performance across LV's funds including a 14%
return on the main With-Profits Fund (FY 2024: 7.9%).

·    Stable operating capital generation of £48 million (FY 2024: £55m).

·    Increased growth in Protection with sales up 8% year-on-year and a
new high in market share of 8.4%**.

·    Equity Release mortgage sales nearly doubled to £181 million (FY
2024: £94m) and a new high in market share of 6.9%**.

·    Operating expenses (excluding commission payments) continue to be
well managed at £145 million (FY 2024: £153m).

·    S&P rating increased to BBB with a positive outlook.

·    Continued investments in digital self-serve portals, web chat and
call services, further improving access to LV= products and services.

·    Service rated excellent by customers according to net promoter
scores.

 

David Hynam, LV= Chief Executive, said:

 

"Our 2025 results demonstrate how we are consistently delivering for our
members. We have maintained capital strength, enhanced investment performance
and, most importantly for a mutual, shared £100 million of bonuses with
eligible members. Our results reflect our clear strategy, steady execution and
a team focused on always doing the right thing for members, customers and
advisers.

 

"We remain resilient in the face of market shifts and external pressures,
operating from a foundation of underlying financial strength, evidenced by our
Capital Coverage Ratio of 202%. Our Solvency II surplus of £370 million
further supports this position and ensures we remain well-placed to continue
supporting members through changing market conditions.

 

"Despite increasingly competitive markets, we've delivered improved new
business sales across Protection and Equity Release, with both reaching new
market share highs of 8.4% and 6.9% respectively, as well as seeing increases
in sales of our Smoothed Managed Fund range. This performance reflects the
strength of our propositions and our continued focus on meeting our customers'
needs.

 

"We have also seen a positive return of 14% on our main With-Profits Fund,
which is a result of the active management, oversight and expertise of our
in-house investment team in partnership with our primary asset manager,
BlackRock.

 

"Looking ahead, we remain focused on long‑term member value and the
financial strength of the business. We will continue to invest where it
matters, maintain strong capital discipline and do the right thing for our
members today and for generations to come."

 

Financial highlights:

                                                       FY 2025           FY 2024
 New business sales (PVNBP basis)                      £1,232 million   £1,229 million
 - Savings and Retirement                              £802 million      £831 million
 - Protection                                          £430 million      £398 million
 Main With-Profits Fund                                14.0%            7.9%
 Smoothed Managed Funds - Balanced Fund return         9.7%             12.5%
 Member bonuses                                        £100 million      £29 million
 Profit before tax and member bonuses                  £63 million      £80 million
 (Loss)/profit before tax                              £(37) million     £51 million
 Operating expenses                                    £248 million     £244 million
 - Operating expenses (excluding commission payments)  £145 million      £153 million
 Capital metrics
 Operating capital generation(i)                       £48 million       £55 million
 Solvency II Capital surplus(ii)                       £370 million      £411 million
 Capital Coverage Ratio(iii)                           202%              192%

 

At the heart of LV's delivery is its member-first philosophy: when the
business succeeds, so does its members. Reflecting this commitment, LV= shared
£100 million of member bonuses with eligible member policies. This included a
one-off final distribution of £80 million relating to the 2019 sale of the
General Insurance business.

 

LV's focused business strategy is built on a position of underlying financial
strength, demonstrated by a Capital Coverage Ratio of 202% (FY 2024: 192%) and
a capital surplus of £370 million (FY 2024: £411m).

 

Operating expenses (excluding commission payments) remain well managed at
£145 million (FY 2024: £153m), reflecting disciplined cost management in the
context of inflationary pressures, while still supporting important investment
in the business. Additionally, LV's overall performance was recognised by
S&P, resulting in an improved rating to BBB with a positive outlook.

 

Despite rising competitive and margin pressures in key markets, sales
performance across core propositions remained strong versus the prior year.
Protection sales reached £430 million (FY 2024: £398m), rising by 8%
year-on-year, while Equity Release sales nearly doubled to £181 million (FY
2024: £94m). Both propositions achieved new market share highs, reflecting
the strength of LV's product offering.

 

Sales of Smoothed Managed Funds increased to £123 million (FY 2024: £89m)
and the Smoothed Managed Fund range continued to perform with a 9.7% smoothed
return on the Balanced Fund (FY 2024: 12.5%). There was a 14% return on the
main With-Profits Fund (FY 2024: 7.9%), supporting further growth across the
portfolio. 2025 also marked 20 years since the launch of LV's smoothed
investment product, created to limit the impact of market volatility and
enable a smoother investment journey.

 

Profit before tax and member bonuses was £63 million (FY 2024: £80m), with
the payment of £100 million member bonuses leading to a loss before tax of
£37 million (FY 2024: profit before tax £51m). This reflects pressure on
trading and new business profitability in competitive markets offset by strong
investment returns and positive one-off management actions, including updating
the retirement basis on some of our legacy policies which had previously
adversely impacted our 2024 results.

 

LV= also enhanced its Fixed Term Annuity, meaning all new customers become
eligible for a mutual bonus after the first 12 months - the UK's first
with-profits fixed term annuity product to offer members a share in business
success.

 

Significant progress was made on a key strategic transformation project to
implement new portals across the protection business. These portals aim to
deliver an improved customer, adviser and colleague experience through faster
self-service, shorter journey times and improved claims journeys.

 

Alongside this, there has been continued investment in LV's multi-year
programme to improve its core systems and enhance the end-to-end experience
for members, customers and advisers. This investment has resulted in decreased
call waiting times and increased self-service functionality.

 

In 2025, LV= received external recognition across its propositions, customer
experience and colleague engagement. Service performance showed continued
strength, with customers rating the service as excellent, based on net
promoter scores. LV= was named Mutual Insurer Investment Strategy of the Year
at the Insurance Investor European Awards and secured Moneyfacts' Best Income
Protection Provider award for the 16th consecutive year, demonstrating
continued strength in delivering positive customer outcomes. The business was
also recognised by the Financial Times as one of the UK's Best Employers,
alongside further awards acknowledging its colleague experience,
organisational culture and service delivery.

 

LV= remains committed to sustainability and safeguarding the environment. LV's
approach is integrated into business planning to ensure that climate change
and other ESG considerations are captured across its operations. In 2025, LV=
Together (https://www.lv.com/about-us/lv-cares/together) was launched,
strengthening the mutual's commitment to delivering social impact. LV= reports
on its 2025 sustainability achievements in its latest Sustainability Report,
which can be found at LV.com/lvcares (https://www.lv.com/about-us/lv-cares)
.

Looking ahead, LV= remains focused on long‑term value, strong delivery and
supporting those it serves.

 

- Ends -

For further information, please contact:

Pressoffice@lv.com

Notes to editors:

·    These numbers are unaudited.

·    i, ii, iii The Solvency II capital metrics reported in this press
release are based on the estimate of the year end results as at 26 March 2026.
It is possible that the capital position will be adjusted prior to the
publication of the group's Solvency and Financial Condition Report later in
2026.

·    Certain statements in this press release may constitute
"forward-looking statements". These statements reflect the Issuer's
expectations and are subject to risks and uncertainties that may cause actual
results to differ materially and may adversely affect the outcome and
financial effects of the plans described herein. You are cautioned not to rely
on such forward-looking statements. The Issuer disclaims any obligation to
update their view of such risks and uncertainties or to publicly announce the
result of any revisions to the forward-looking statements made herein, except
where they would be required to do so under applicable law.

*About the member bonus:

 

·    LV= delivered £100 million in member bonuses (£20m mutual bonus and
£80m one-off bonus).

·    A one-off bonus is being awarded as the final distribution from the
proceeds of the 2019 sale of the General Insurance business to eligible member
policies, as part of the 2025 overall bonus declaration. This replaces the
exit bonus which LV= has previously distributed to eligible members when their
policy matured, was cashed in, paid out a death claim or when they started to
receive money from the policy. The one-off bonus will be added to policy
values on 1 April 2026 rather than at time of claim, increasing certainty of
payment for members.

·    Further information about the member bonus distribution can be found
at LV.com/annual-report.

·    Profit before tax and member bonuses is used as a measure of our
profitability on a comparable basis to companies owned by shareholders. We
view the discretionary member bonuses we allocate to eligible members as being
equivalent in nature to the dividend payments made by shareholder owned
companies. However, UK GAAP requires these member bonuses to be reported as a
change in long-term business provision, thereby reducing the reported profit
before tax.

 

** Market share figures from Q1 - Q3 2025

 

About LV=

·    LV= is one of the UK's leading life and pensions mutual insurers,
serving over one million members and customers. As an investment, protection
and retirement specialist, LV= offers a range of products, services and advice
to help members and customers protect their income while they're working and
maximise it when they stop.

·    With effect from 18 December 2023 (the "Substitution Date"), LV Bonds
plc, a wholly-owned subsidiary of Liverpool Victoria Financial Services
Limited was substituted in place of Liverpool Victoria Financial Services
Limited as the principal debtor in respect of Fixed Rate Reset Subordinated
Notes callable 2023 due 2043 (ISIN: XS0935312057).

·    LV= and Liverpool Victoria are registered trademarks of Liverpool
Victoria Financial Services Limited (LVFS) and LV= and LV= Liverpool Victoria
are trading styles of the LV= Group of Companies. Liverpool Victoria Financial
Services Limited, registered in England with registration number 12383237 is
authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation Authority, register
number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.

 

 

 

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