LV= made a profit in 2020 despite tough trading conditions, though new business sales were affected by tough trading conditions.
The pension and protection provider made an operating profit of £40m in 2020, up considerably from a £16m loss the year before.
Despite its profit, tough trading conditions brought about by the Covid-19 pandemic hit both LV=’s retirement and protection business.
New business sales in saving and retirement stood at £1,039m in 2020, down from £1,143m in 2019, and protection new business sales were £252m, down from £263m.
LV= chief executive Mark Hartigan said: “Despite the unprecedented challenges presented by the pandemic, LV= has delivered a good financial performance in 2020.
“Through the year we have created significant momentum in our trading businesses and I am particularly pleased that we increased market share in both savings and retirement and protection.
“By taking quick and positive actions in response to Covid-19, as well as delivery of planned change initiatives, we continue to improve service for customers and have strengthened the propositions we offer the market.”
For the first time since 2016, LV= increased its market share in 2020.
Its profit before tax stood at £37m for the year and its Solvency II capital surplus decreased by £254m to £690m. LV= said the reduction was driven by distributions to members which included the introduction of an exit bonus, further de-risking of the pension scheme and economic variances largely driven by falling swap rates which are offset by TMTP movements.