In its 2023 financial results announcement last week, ICMIF member LV= (UK) reported it had returned GBP 30 million to eligible members in the form of member bonuses, which brought the total shared in this way to GBP 385 million since 2011.
Announcing its 2023 results, LV= said its diversified business model and focused strategy have proved resilient despite high inflation, rising interest rates and an environment of low growth and that the mutual had achieved positive results of GBP 107 million profit before tax. LV= said it had shown strong cost disciplines and kept operating costs largely flat and it is proud to continue to deliver positive value for members.
David Hynam, LV= Chief Executive, said: “Thanks to our robust business model and focused strategy, LV= has been profitable despite 2023’s many external headwinds including high inflation, rising interest rates and low growth.
“Our performance allowed us to return GBP 30 million to eligible members in the form of member bonuses. Since 2011, we have shared member bonuses of GBP 385 million – reflecting our commitment to driving the success of LV= so that it can be shared with our members.
“The outlook for LV= remains positive, and the business’s foundations are strong,” Hynam said.
Hynam explained that LV= had continued to evolve and develop the business in line with its strengths and core values, and the diversified business model meant the organisation had outperformed in sales across its protection products and annuities. There is greater demand for Fixed Term Annuities as rates remain high, giving members the certainty they want in retirement. In addition, Hynam believes, the new adviser portal and LV= Platform Services ensure that LV= remains an attractive company that advisers want to do business with. Products remain popular with advisers, and LV= is continuing to drive expansion of the Smoothed Managed Fund range for those looking for lower-volatility investments.
LV= has also continued to build on its product range, by expanding its Equity Release offering with a new range funded by Scottish Widows.
“Sustainability has been at the forefront of our work,” said Hynam. “In addition to our operations being carbon-negative since 2022, we’re committed to driving forward our sustainability strategy. This includes our transition to an exciting new primary asset manager, BlackRock, a market-leader in sustainability and the largest asset manager in the world, with unparalleled investment capabilities.”
As an organisation, LV= says it is taking steps to do all that it can to ensure it is environmentally responsible and sustainable in the way it operates. Learn more in the LV= Sustainability Report.
Hynam continued: “My focus going forward is to drive LV’s performance and delivery as a high performing, best in class mutual that gives great returns to members alongside striving for excellent customer service.
“As a result of our focused business strategy, we have returned a profit this year. LV= members can be confident that we are driving progress and our foundations remain strong,” Hynam concluded.
