LV= profits fall 97% despite life and pension surge

Pre-tax profits were down 97% to £1m from £49m a year earlier.

However the Group's life and pensions business saw a strong six months with operating profit more than doubling to £28 million.

LV= saw growth across all product lines with a 10% increase overall, and sales breaking through the £1bn mark. The Group reported a 39% rise in its flexible guarantee products and 42% growth in fixed term annuity sales.

Its Retirement Solutions business saw total new premiums exceed £860m, up 20% on H1 2015.

Richard Rowney, LV= Group Chief Executive, said: “In the first half of the year we have delivered increased sales in both our general insurance and life & pensions businesses. The Group operating profit of £33 million reflects lower operating profits in the general insurance business and a £19 million loss in the heritage business mainly driven by claims experience variances, offset by an increase in life operating profit.

"Profitability in 2016 has been affected by the non-recurrence of a number of one-off factors that arose in 2015. The rating environment in general insurance remains mixed with rate increases in motor and a continuation of the soft market conditions in home.

“I’m particularly pleased with the performance of our life & pensions business where total sales have broken through the £1 billion mark with growth in all product lines. We continue to see a trend towards blended and hybrid products following the Government’s pension reforms as people increasingly exercise their ability to choose how they fund their retirement."