LV= has announces its interim results for the six months ending 30 June 2018.
Operating profit was £42 million, down from £56 million for the first six months of 2017.
Life new business contribution was £14 million (HY 2017: £20 million, £16 million excluding discontinued lines.
General insurance gross written premiums were up 1% to £827 million.
Richard Rowney, LV= group chief executive, said: “We have made steady progress in the first six months of the year with good underlying trading results partially masked by the impact of the ‘Beast from the East’ bringing severe weather across the UK in February and March. Tackling competitive trading conditions and a significant change agenda, the business continues to perform well with top-line growth in General Insurance and increased profits in Life.
“Our capital position continues to be strong and our Capital Coverage Ratio (CCR) stands at a healthy 178%, compared with 180% at the end of 2017. At this level it is well within our risk appetite and maintaining this relative position will continue to be an area of management focus in the future.
“In Life & Group, we delivered an increased operating profit of £19 million (HY 2017: £7 million). However, new business sales are down 5% at £983 million (HY 2017: £1,035 million) reflecting the withdrawal from capital intensive product lines in protection and a reduction in pensions sales which was expected following the high levels of defined benefit to defined contribution transfers in 2017.
“In common with most other home insurers our general insurance business was adversely impacted by severe weather at the start of the year which resulted in £17 million of net claims leading to an operating profit of £23 million for the first six months (HY 2017: £49 million). The underlying business continues to perform well with top line growth in both our direct and broker personal lines businesses.
“Our strategic partnership with Allianz, originally announced in August 2017, is progressing smoothly and we have recently begun the process of transferring the renewal rights for Allianz’s personal lines business to LV=. I remain excited by the potential of the partnership and we continue to explore ways of working together.”