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LV= makes £49m loss after pensions freedoms hit

LV= made a group loss before tax of £49m in 2016 as the mutual was beset by losses coming from pension freedoms.

The company made a profit of £124m the previous year.

By contrast the mutual’s life and pensions arm profits slightly increased in 2016, from £41m to £45m.

The mutual’s heritage businesses, made up of closed books of business in run-off, made an operating loss of £35m, compared to an £88m profit in 2015.

LV= says this loss was “driven by model and valuation changes and adverse claims experience reflecting changes in the basis used to calculate the amount payable when a policyholder takes the proceeds from the policy as cash rather than as an annuity as a result of the volatility following the changes to pensions freedoms.”

LV= group chief executive Richard Rowney (pictured) says: “Against the wider challenging backdrop of a sustained low interest rate environment, increased capital requirements resulting from the transition to Solvency II and the continued impact of claims inflation, I am reassured that the business is moving in the right direction.”

Last month Money Marketing reported LV= had held talks to secure a merger with Royal London amid a backdrop of tougher capital requirements.


LV= pilots robo-advice paraplanner service

LV= is trialling a robo-advice paraplanner service with advisers and says it has a pipeline of 40 deals with businesses wanting to access its online advice service. Retirement solutions managing director John Perks says LV= is already using a version of the robo-paraplanner and is in discussions with clients about using the technology. Perks says: “We […]

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Wells Street Journal: LV= heavyweight makes history

Dubbed “the killer from near Aston Villa” by LV= colleagues, retirement solutions managing director John Perks (right) is known to pack a punch. But rather than putting his aggression into nerdy pensions debates, the mutual heavyweight recently entered the boxing ring to raise money for Cancer Research UK. Perks smashed his target and secured an […]


Lifetime Isa – how it works

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