Earnings double at LV despite tough trading
INSURANCE firm LV= yesterday reported profits of £72.1m for 2011, more than double the amount earned in the previous year.
The company’s general insurance arm, formerly known as Liverpool Victoria, grew premium revenues by 23 per cent to £1.46bn and overcame declining investment returns to post the substantially improved profit.
LV= is now the fourth biggest car insurer in the UK, and gross premiums written in car insurance rose by 53 per cent to £578m.
The firm profited from a reduction in claims following car accidents, mainly due to customers driving more slowly to save petrol and improved safety measures.
John O’Roarke, managing director of LV= general insurance, is targeting further increases in profitability during the next year: “Our focus for 2012 and beyond will be on increased profitability along with steady growth.
“We believe that the quality of our portfolio and the excellent rapport we have with our customers will enable us to generate sustained growth in underlying profits over the coming years.”
LV= added 500 staff during 2011. It is the UK’s largest friendly society with around one million members.