LV= reports £91m pre-tax loss
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LV= has reported a group IFRS pre-tax loss of £91.4m for 2009.
In its financial statement released today, the insurer recorded an IFRS loss before tax of £91.4m, down considerably on 2008 when the firm reported a pre-tax loss of £258.3m.
The insurer says the loss is due to basis changes, reserve strengthening, short term investment fluctuations and the cost of buying equity protection in 2009.
Underlying profit grew to £44.2m, up from £2.3m on 2008 and funds under management increased 10 per cent to £7.7bn.
Overall investment returns for with-profits members reported a fund growth of 15.4 per cent in 2009, and life new business for 2009 increased 7.5 per cent to £92.2m on an annual premium equivalent.
Overall individual protection sales increased by 13 per cent to £17.7m as a result of “targeted pricing in the term assurance market”, says LV=. Overall sales of LV=’s 50 Plus plan increased 27 per cent to £3.3m in 2009, up from £2.6m in 2008.
Going forward, LV= says it will continue to broaden and enhance its product range, including key product launches in annuities and protection.
The financial statement also shows that group chief executive Mike Rogers received a remuneration package totalling £997,000 in 2009, while group chief operating officer Richard Rowney received £449,000.
Former executive director Steven Daniels, who resigned in September 2009,received £477,000, group finance director Keith Abercromby was remunerated £378,000 and chairman Dennis Holt received £142,000.
Non-executive directors Gillian Nott , Mark Austen, Stuart Sinclair and Ian Reynolds received £60,000, £59,000, £56,000 and £52,000 respectively.
The statement says: “Remuneration reflects individual experience, responsibilities, function and sector, along with individual and company performance, and is reviewed each year. Judgements are based on a range of benchmarking information, mainly from independent external consultants.”
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