Insurance firm LV= has posted pre-tax profits of £1m for the first half of the year, a significant drop of 97 per cent from the £49m posted in H1 of 2015.
Group operating profit fell to £33m for the first half of the year, down from £79 in the first half of 2015.
In the report, the insurance group said that, although motor and commercial insurance had seen ‘good growth’, home insurance premiums were flat, which it says reflects the ‘soft market conditions.’
Despite this poor turnover in general insurance, LV= saw operating profits more than double in its life and pensions business, thanks to pension freedoms.
The provider’s results show operating profit has gone from £12m for the first half of last year to £28m as at 30 June.
It has seen a 10 per cent increase in pensions sales overall, a 39 per cent rise in its flexible guarantee products and an increase of 42 per cent in fixed term annuity sales.
LV= group chief executive Richard Rowney says: “I’m particularly pleased with the performance of our life and pensions business where total sales have broken through the £1bn mark with growth in all product lines.
“We continue to see a trend towards blended and hybrid products following the Government’s pension reforms as people increasingly exercise their ability to choose how they fund their retirement.”