LV's premium income surges 37%

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GWP increases to £546.4m for first half of 2010; combined operating ratio improves to 101.9%.

LV's premium income surged 37% to £546.4m for the first half of this year (H1 2010).

The mutual posted a significant increase compared to £397.5m for the same period last year (H1 2009). LV improved its combined operating ratio to 101.9% (H1 2009: 103.8%).

A spokesman said LV did not include profits in half-year results becasue it was a mutual. Last year, LV posted a £7m profit compared to a £30m loss in 2008.

LV said it was now the fourth largest motor insurer in the UK. General Insurance managing director John O'Roarke said the insurer bucked the market, which has suffered from rising costs in motor accident claims, because of its 'precision in risk pricing'.

O’Roarke said: “The results in our general insurance business are better than those experienced by the market as a whole. I believe this is due to our precision in risk-pricing and a determination to address claims fraud and exaggeration which would otherwise push up premium rates for honest customers.

“Our reputation for consistently good customer service has also helped us enormously to win and retain new customers.”

Mike Rogers, group chief executive, said: "In general insurance, both the direct and broker channels performed strongly. We have taken the opportunity in current market conditions to combine increased rates with growth in business volumes and this has driven profitability.”