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LV= announces 2023 financial results


Resilient business model and focused strategy deliver positive value for members 

Investment, protection and retirement specialist LV= announces its financial results for the year to 31 December 2023 and publishes its Annual Report -

Key financial and operational highlights:

  • £30 million of member bonuses shared with eligible members bringing the total shared to £385 million since 2011.
  • Increased profitability with operating profit up at £43 million (FY 2022: £24 million) and profit before tax of £107 million (2022: £145 million Loss before tax).
  • Group Solvency II Capital Coverage Ratio of 204%i (FY 2022: 174%) and reduced debt by £150 million.
  • Improved Solvency II operating capital generation of £35 millionii (FY 2022: £2 million).
  • Year-on-year growth in sales of annuities (47%) and reached a new high in Protection market share (7.9%).
  • Operational costs remain flat despite significant inflationary pressures.
  • Appointment of BlackRock as new primary asset manager.
  • Expanded LV= Equity Release offering at the end of the year with new Lifestyle range.
  • Launched LV= Platform Services broadening adviser access to LV= Smoothed Managed Funds.
  • Strengthened senior leadership team with Stephen Percival as Chief Financial Officer.
  • Ongoing engagement with members through the new online LV= Member Community.
  • Launched a cost-of-living hub on to help members navigate through difficult times.

“Thanks to our robust business model and focused strategy, LV= has been profitable despite 2023’s many external headwinds including high inflation, rising interest rates and low growth. 

“Our performance allowed us to return £30 million to eligible members in the form of member bonuses. Since 2011, we have shared member bonuses of £385 million – reflecting our commitment to driving the success of LV= so that it can be shared with our members. 

“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, and I am pleased to say that our diversified business model meant we outperformed in sales across our protection products and annuities. There is greater demand for Fixed Term Annuities as rates remain high, giving members the certainty they want in retirement. In addition, our new adviser portal and LV= Platform Services ensure that we remain an attractive company that advisers want to do business with. Our products remain popular with advisers, and we continue to drive expansion of the Smoothed Managed Fund range for those looking for lower-volatility investments. 

“We have also continued to build on our product range, by expanding our Equity Release offering with a new range funded by Scottish Widows. 

“At the same time, we have shown strong cost disciplines and kept operating costs largely flat despite an external environment of significant inflation. 

“Sustainability has been at the forefront of our work. In addition to our operations being carbon-negative since 2022, we’re committed to driving forward our sustainability strategy. This includes our transition to an exciting new primary asset manager, BlackRock, a market-leader in sustainability and the largest asset manager in the world, with unparalleled investment capabilities. 

“My focus going forward is to drive LV’s performance and delivery as a high performing, best in class mutual that gives great returns to members alongside striving for excellent customer service.

“As a result of our focused business strategy, we have returned a profit this year. LV= members can be confident that we are driving progress and our foundations remain strong.”

David HynamLV= Chief Executive

Financial Highlights

   FY 2023  FY 2022   Change (%)
 Operating profit  £43 million  £24 million  79%
 Trading profit  £44 million  £47 million   (6)%
 - Savings and Retirement  £5 million  £20 million  (75)%
 - Protection  £30 million  £20 million  50%
 - Heritage  £9 million   £7 million  29%
 New business sales (PVNBP basis)  £1,187 million  £1,507 million  (21)%
 - Savings and retirement  £831 million  £1,097 million   (24)%
 - Protection*  £356 million   £410 million  (13)%
 Profit/(loss) before tax  £107 million   (£145 million)  n/a
 Capital metrics      
 Operating capital generation  £35 million ii  £2 million  1,650%
 Capital surplus  £469 million iii  £391 million  20%
 Capital Coverage Ratio  204% i  174%  +30%

*Underlying sales of protection products have increased, with new business premiums of £43 million (2022: £42 million). The decrease in sales of protection products when reported on a PVNBP basis is driven by interest rate increases which have decreased the present value of expected future premiums associated with the new business sales during the year.


Trading profit has remained stable at £44 million (2022: £47 million), while operating profit has increased to £43 million (2022: £24 million).

New business sales, on a Present Value of New Business Premiums (PVNBP) basis, decreased by 21% to £1,187 million (2022: £1,507 million). Within this, sales of annuities and protection products have increased and outperformed sales targets. However, Smoothed Managed Funds and Equity Release had lower than planned sales.

New business sales in Protection totalled £356 million on a PVNBP basis, slightly lower than in 2022 (£410 million). However, underlying sales volumes rose, while the PVNBP decrease was driven by the increased interest rate impacting the calculation of the present value of expected future premiums associated with the new business sales during the year. 

Savings and Retirement total PVNBP of £831 million (2022: £1,097 million) was impacted by lower sales of the Smoothed Managed Fund range, which offers protection from market volatility while facilitating growth. LV= is expecting to see increased sales in 2024 following improved fund performance and as key initiatives progress.

Towards the end of 2023, LV= announced it had expanded its equity release offering with the new Lifestyle range funded by Scottish Widows.

LV= returned a profit this year, generating £107 million of profit before tax, compared with a loss before tax of £145 million in 2022.

Strong cost disciplines embedded within the business led to targeted operating expenses remaining largely flat at £109 million (2022: £105 million), despite inflationary pressures.

Non-operational items, benefited from some large, positive one-off impacts, in particular £85 million generated by UK Solvency reforms, which impacted the way in which we calculate the value of our insurance contract liabilities. This year’s result also saw a significant year-on-year improvement, driven by a positive swing in the overall impact from economic fluctuations, of just over £100 million.

Maintaining strong underlying foundations for the business remained a key area of focus in 2023. LV= continues to generate positive operating capital and our Solvency II capital position remains strong, with a capital surplus of £469 millioniii (2022: £391 million) and a Capital Coverage Ratio of 204%i (2022: 174%), well above LV’s minimum risk appetite of 140%.

Our ongoing strong capital position has allowed us to allocate £30 million (2022: £35 million) in member bonuses for eligible members, bringing the total distributed since 2011 to £385 million.

- Ends -

Notes to editors: 

These numbers are unaudited.

i, ii, iii The Solvency II capital metrics reported in this press release are based on the estimate of the year end results as at 21 March 2024. It is possible that the capital position will be adjusted prior to the publication of the group’s Solvency and Financial Condition Report later in 2024.

Certain statements in this press release may constitute "forward-looking statements". These statements reflect the Issuer's expectations and are subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. The Issuer disclaims any obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law.

About LV=

LV= is one of the leading life and pensions mutual insurers, serving over one million members and customers across the UK. As an investment, protection and retirement specialist, LV= offers a range of products, services and advice to help members and customers protect their income while they’re working and maximise it when they stop. 

With effect from 18 December 2023 (the “Substitution Date”), LV Bonds plc, a wholly-owned subsidiary of Liverpool Victoria Financial Services Limited was substituted in place of Liverpool Victoria Financial Services Limited as the principal debtor in respect of the GBP 350,000,000 6.50 per cent. Fixed Rate Reset Subordinated Notes callable 2023 due 2043 (ISIN: XS0935312057).

LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited and trading styles of the LV= Group of Companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.

LV Bonds plc, registered in England with registration number 15058232 and registered address: County Gates, Bournemouth, BH1 2NF.