LV= increased pre-tax profits by 51 per cent in 2013, up to £156m from £103m in 2012.
The insurer saw overall customer numbers increase from 5.2m in 2012 to 5.5m, driven primarily by a 273,000 increase in general insurance customers.
Group operating profits increased 19 per cent from £88m to £105m.
Its mutual bonus increased marginally from £21m in 2012 to £22m for 2013.
The firm raised £350m last May through a corporate debt issue in order to strengthen its financial position.
Managing director Richard Rowney says the improved capital position could see the firm expand through acquisitions: “For us it definitely allows us to grow the business in our chosen markets and we could do that either inorganically or organically. Some companies may struggle to adapt to the changing environment.”
He says the firm expects to reveal retirement income product development shortly. He adds: “Retirement income is somewhere we are strongly positioned. More product innovation in that area is undoubted.”