LV= sales take off on premium hikes

Mutual insurer LV= reported a surge in sales during the first half of the year yesterday, helped by rising car insurance prices and strong demand for specialist annuities.

The firm, formerly Liverpool Victoria, had life insurance sales of 63.5 million in the first six months of 2010, an increase of 40 per cent compared with a year earlier, while general insurance sales rose 37 per cent to 546.4m. The company is one of Britain's biggest customer-owned financial services groups whose main UK rivals include fellow mutually owned Royal London as well as Aviva, RSA, Prudential and Legal & General.

LV= said profit also rose during the first half, but did not disclose figures. Chief executive Mike Rogers said the society was strongly capitalised.