LV’s chief executive yesterday praised its “strong” foundations, as the company returned to profit for the first time since battling a takeover by a US private equity predator.
The insurer reported a pre-tax profit of £107 million for 2023 – after a loss of £145 million in 2022 – while also returning more than £30 million to mutual members.
The results vindicate the battle – led by the Mail – to prevent LV from falling into the hands of Bain Capital.
Boss David Hynam said: “LV’s outlook remains positive and the foundations of the business are strong.
“We have continued to evolve and grow the business in line with our strengths and core values. Thanks to our focused business strategy, we made a profit this year.
A good sign: LV reported a pre-tax profit of £107 million for 2023 – after a loss of £145 million in 2022 – while also returning more than £30 million to mutual members.
Formerly known as Liverpool Victoria, the society was founded in Liverpool in 1843 to help the city’s poor pay for a decent burial.
Its mutual structure means that it is managed in the interests of customers rather than in the interests of a profit-hungry investor.
Since 2011, he has shared bonuses of £385 million. That status was threatened when former chief executive Mark Hartigan attempted to sell it to Bain for £530m. He said at the time: “This is the only agreement that guarantees our future.”
But activists and politicians across the spectrum united to condemn the move, and the deal collapsed in late 2021 when it failed to gain sufficient support from more than a million of its members.
Hynam took over in September 2022 and promised to lead the mutual into a “new era”.
LV’s latest results highlighted a 47 per cent growth in the sale of annuities – financial products purchased with pension savings which pay a guaranteed regular income for a fixed period or for life.
Hynam said there had been greater demand for fixed-term annuities while interest rates remained high. But he added that the mutual “has not been immune to the turmoil that has hit the sector and the economy as a whole”, with lower-than-expected sales of some types of its investment funds.
