Insurer Liverpool Victoria hails profits turnaround

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The group, which trades as LV and has 3.2 million members and customers, saw operating profits jump 128% to £62.8 million in 2008.

The turnaround comes just two years after the mutual posted losses. The group has pulled out of banking to focus on the general insurance market.

Chief executive Mike Rogers said the firm had no direct exposure to the collapse of the Icelandic banking system or sub-prime mortgages.

He added: "Trading has started well in 2009, with sales in the first two months strongly ahead of the same period last year, although investment markets remained volatile."

LV 's life insurance arm was helped by its 2007 acquisition of reinsurer Swiss Re's retirement solutions business, driving an 83% growth in new business income.

Its £150 million takeover of Highway Insurance, the owner of broker Hero, will also push it into the UK's top-five biggest car insurers by 2012.
The group has meanwhile benefited from tie-ups with building society Nationwide on travel and car insurance. Gross premiums were up 38% to £917 million over the year.

The Bournemouth-based mutual also said it had retained its financial buffers despite the turbulence in global markets. The group currently holds more than twice the level of capital surplus required.

LV has managed to absorb short-term investment hits - which pushed it to a bottom-line loss of £202 million - to retain significant shares in long-term growth assets, benefiting its members over a longer horizon.

Mr Rogers added: "Throughout a turbulent year our single-minded focus on helping our members and customers to look after what they love has held us in good stead."

The mutual began life in 1843 as Liverpool Victoria but changed its brand to LV in 2007. It now employs more than 3,800 people and manages around £7 billion on their behalf.