REG - LV= LV Bonds PLC - LV= ANNOUNCES 2024 FINANCIAL RESULTS
27/03/2025 08:15
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RNS Number : 4684C LV= 27 March 2025
LV= ANNOUNCES 2024 FINANCIAL RESULTS
A positive set of results underline that LV's focused business strategy
and strong leadership delivers for members
Investment, protection, retirement and in-house advice specialist LV=
announces its financial results for the year to 31 December 2024 and publishes
its Annual Report (LV.com/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 £29 million
to 280,000 eligible members, totalling £414 million since 2011.
● A 57% increase in operating capital generation from LV's trading
businesses to £55 million (FY 2023: £35m).
● Continued robust capital position with a Capital Coverage Ratio
(CCR) of 192%.
● Strong growth in Protection resulted in a year-on-year sales
increase of 12% and Equity Release mortgage advances increased positively.
● Overall, new business sales on a Present Value of New Business
Premiums (PVNBP) basis grew by 4% to £1,229 million (FY 2023: £1,187m).
● Strong returns generated across the Smoothed Managed Fund range,
including a 12.5% return over 2024 on the Balanced Fund.
● A continued focus on cost efficiencies saw operating expenses
reduce by 4% to £244 million (FY 2023: £255m).
● The expansion of LV= Platform Services increased adviser access to
LV= Smoothed Managed Funds.
● Service enhancements saw improved customer and adviser experiences
and feedback.
● External awards and accreditations recognised LV's products,
customer experience, delivery and culture.
David Hynam, LV= Chief Executive, said:
"As a mutual, members come first. Since 2011, we've shared a total of £414
million in member bonuses, of which £29 million will be distributed to
280,000 eligible members as a result of our 2024 results.
"Our results show that our focused business strategy is delivering and
returning value for members. Our Capital Coverage Ratio of 192% and increase
in operating capital generation of 57% to £55 million, underscores the
financial strength of the business and highlights our robust capital position.
"I am also pleased to highlight a positive year in terms of driving down
operating expenses by 4%. Members will appreciate that we are not only
returning profits to them in the form of the member bonus, but we are also
running the business efficiently on their behalf.
"Our financial performance is a result of our forward-looking strategic
approach and points to the significant benefit of our diversified portfolio,
which includes award-winning products, services and advice. We've seen
positive sales growth across protection and equity release, and strong
investment performance from our Smoothed Managed Fund range.
"The strength of the LV= brand continues, together with its recognition as one
of the most recommended in the UK. Our focus is on its growth and the future
success it presents for our members. We look forward to exploring further
brand partnership opportunities at the end of the general insurance brand
agreement with Allianz which commenced in 2017.
"We are well positioned to further enhance investment and financial
performance. We remain steadfastly committed to doing the right things for our
members, customers and advisers, and continuing to deliver for this and future
generations to come."
Financial highlights:
FY 2024 FY 2023 Change (%)
New business sales (PVNBP basis) £1,229 million £1,187 million 4%
- Savings and Retirement £831 million £831 million 0%
- Protection £398 million £356 million 12%
Member bonuses £29 million £30 million (3)%
Operating expenses £244 million £255 million (4)%
Operating profit £43 million £43 million 0%
Profit before tax £51 million £107 million (52)%
Capital metrics
Operating capital generation(i) £55 million £35 million 57%
Capital surplus(ii) £411 million £469 million (12)%
Capital Coverage Ratio(iii) 192% 204% (12)%
With a focused business strategy and balanced portfolio, LV= continues to
deliver impactful results.
Overall, new business sales on a Present Value of New Business Premiums
(PVNBP) basis grew by 4% to £1,229 million (FY 2023: £1,187m). Protection
sales increased by 12% year-on-year, with PVNBP reaching £398 million in 2024
(FY 2023: £356m). Savings and Retirement sales remained stable at £831
million and there was positive growth for equity release sales.
The LV= Smoothed Managed Fund range, supported by LV's primary asset manager
BlackRock, delivered strong returns, including a 12.5% return over 2024 on the
Balanced Fund.
LV's member-first philosophy guides everything it does. When the business
succeeds, its members benefit directly through member bonuses. £29 million of
bonuses were shared with 280,000 eligible members, totalling £414 million
since 2011.
The business has a strong financial position, reflected in a Capital Coverage
Ratio of 192% (FY 2023: 204%) and a capital surplus of £411 million (FY 2023:
£469m), ensuring it's well-positioned for continued growth. Additionally, the
year-on-year increase in operating capital generation to £55 million (FY
2023: £35m), coupled with robust cost management further strengthens LV's
foundations for the future.
LV= is committed to providing excellent experiences for members, customers and
advisers and this is evidenced by continuous service enhancements, including
expanding digital capabilities and streamlined processes. New online features
and more ways to get in touch, provides even better accessibility. The
continued roll out of LV= Platform Services ensures LV= remains easy to do
business with and positions the company for continued future success.
LV's sustained investment in member engagement, including the LV= Member
Community, demonstrates its commitment to giving members a say in how the
business operates.
These efforts, along with LV's reduction in operating expenses to £244
million (FY 2023: £255m) underlines its focus on innovation, robust
operational efficiency and delivering brilliant outcomes for members.
External awards and accreditations recognised LV's products, customer
experience, delivery and culture. Accolades include The Times Money Mentor
Awards for Best Pensions Drawdown Provider and the Moneyfacts Best Income
Protection Provider. Awards were also received for customer service delivery
as well as for its commitment to colleague experience and inclusion.
LV= reported a profit before tax of £51 million (2023: £107m). This
year-on-year decrease is driven by the one-off favourable impact from Solvency
UK reforms improving the 2023 result by £85 million. Operating profit
year-on-year remained stable at £43 million (FY 2023: £43m).
LV= remains committed to sustainability and responsible business practices. It
has reported on the work done across 2024 in its latest Sustainability Report,
which can be accessed at LV.com/lvcares (https://www.lv.com/about-us/lv-cares)
.
Looking ahead, LV= is focused on delivering excellence through its products,
services and advice and will continue to create great experiences for members,
customers and advisers.
- Ends -
For further information, please contact:
Pressoffice@lv.com, 07850 448 408
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 2025. 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 2025.
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 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 the GBP 350,000,000 6.50 per cent. 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 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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