Mutual insurer LV=’s general insurance business made a pre-tax profit of £52m in the first half of 2011, up 53% on the £34m it made in the same period last year.
The insurer also turned an underwriting profit, posting a combined ratio of 98.1% in this year’s first half compared with a loss-making 101.9% in the first half of 2010.
LV=’s general insurance gross written premiums increased 29% to £704m from £547m.
“This is very satisfactory performance in what remains a challenging time for the industry as a whole,” said LV= general insurance managing director John O’Roarke in a statement.
“The investments we have made over the last four years in building a highly skilled, people-focused, multi-channel insurer continue to generate strong returns.”
Premiums written through the broker channel grew 18% to £354m. Broker motor personal lines were up 13% to £281m through a combination of rate hardening and growth in policy volumes. Commercial lines premiums increased 38% to £70m.
LV=’s direct car business also grew. Gross written premiums increased 58% to £273m.
“Priorities for the remainder of 2011 include continuing steady growth across both channels and keeping a tight focus on personal injury and fraud costs," O'Roarke said.
"This will enable us to continue to offer great value products to our customers and continued strong returns for members.”
LV H1 2011 general insurance results in £m (compared with H1 2010)
- Gross written premiums: 704 (547)
- Profit before tax: 52 (34)
- Combined ratio: 98.1% (101.9%)
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