LV’s chief executive yesterday hailed its ‘strong’ foundations as it returned to profit for the first time since fighting off a takeover by a US private equity predator.
The insurer reported a pre-tax profit of £107m for 2023 – after a loss of £145m in 2022 – while also returning more than £30m to members of the mutual.
The results vindicate the battle – led by the Mail – to prevent LV from falling into the hands of Bain Capital.
Boss David Hynam said: ‘The outlook for LV remains positive and the business’s foundations are strong.
‘We have continued to evolve and develop the business in line with our strengths and core values. As a result of our focused business strategy, we have returned a profit this year.’
A good sign: LV reported a pre-tax profit of £107m for 2023 – after a loss of £145m in 2022 – while also returning more than £30m to members of the mutual
Previously known as Liverpool Victoria, the company was founded in Liverpool in 1843 to help the poor of the city pay for a decent burial.
Its mutual structure means it is run for the benefit of customers rather than a profit-hungry investor.
Since 2011 it has shared member bonuses of £385m. That status that was put under threat when former chief executive Mark Hartigan tried to sell it to Bain for £530m. He claimed at the time: ‘It’s the only deal that secures our future.’
But campaigners and politicians from all sides united to condemn the move and the deal collapsed in late 2021 when it failed to win sufficient support from its more than 1m members.
Hynam took over in September 2022 and promised to lead the mutual into a ‘new era’.
LV’s latest results highlighted 47 per cent growth in the sale of annuities – financial products bought with pension savings that pay out a regular guaranteed income for a fixed period or for life.
Hynam said there had been greater demand for fixed-term annuities as interest rates remain high. But he added that the mutual had ‘not been immune to the turmoil that has gripped the sector and wider economy’ with lower than planned sales in certain types of its investment funds.
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