LV= has announced a strong set of financial results for the year ending 31 December 2024, reporting 57% increase in operating capital generation – rising to £55m from £35m the previous year.
Throughout the year, LV= distributed £29m in bonuses to 280,000 eligible members.
Since 2011, the mutual has shared a total of £414m in member bonuses.
LV= also maintained a robust capital position, with a Capital Coverage Ratio (CCR) of 192%.
Business growth was evident across multiple areas.
Protection sales saw a 12% year-on-year increase, and equity release mortgage advances also showed positive momentum.
New business sales, based on the present value of new business premiums, grew by 4% to £1,229m, up from £1,187m in 2023.
Operational efficiencies were another highlight, with LV= reducing its operating expenses by 4% to £244m from £255m the previous year.
Additionally, the expansion of LV= Platform Services increased adviser access to its Smoothed Managed Funds, further strengthening its market presence.
David Hynam, LV= chief executive, said: “Our results show that our focused business strategy is delivering and returning value for members.
“I am also pleased to highlight a positive year in terms of driving down operating expenses by 4%.
“Members will appreciate that we are not only returning profits to them in the form of the member bonus, but we are also running the business efficiently on their behalf.”
He added: “Our financial performance is a result of our forward-looking strategic approach and points to the significant benefit of our diversified portfolio, which includes award-winning products, services and advice.
“We’ve seen positive sales growth across protection and equity release, and strong investment performance from our Smoothed Managed Fund range.
“The strength of the LV= brand continues, together with its recognition as one of the most recommended in the UK. Our focus is on its growth and the future success it presents for our members.
“We look forward to exploring further brand partnership opportunities at the end of the general insurance brand agreement with Allianz which commenced in 2017.”
Hynam concluded: “We are well positioned to further enhance investment and financial performance.
“We remain steadfastly committed to doing the right things for our members, customers and advisers, and continuing to deliver for this and future generations to come.”
