LV= has reported its financial results for the year to December 31, 2025, highlighting a strong capital position, solid investment performance and a record £100 million distributed to members.
The mutual said its member-first model remained central to performance, with £100 million paid in bonuses to 250,000 eligible policies - the largest distribution in its history. This included £80 million as a final distribution linked to the 2019 sale of its general insurance business. Since 2011, LV= has shared a total of £513 million with eligible members.
LV= reported a capital coverage ratio of 202%, up from 192% in 2024, alongside a Solvency II capital surplus of £370 million (2024: £411 million). Operating capital generation was £48 million, compared with £55 million the previous year.
Investment performance improved significantly, with a 14.0% return on the main with-profits fund (2024: 7.9%). The Smoothed Managed Funds Balanced Fund delivered a 9.7% return, compared with 12.5% in 2024.
Profit before tax and member bonuses was £63 million (2024: £80 million). After the £100 million member bonus distribution, LV= reported a loss before tax of £37 million, compared with a £51 million profit in 2024.
New business sales on a PVNBP basis totalled £1,232 million, broadly stable compared with £1,229 million in 2024. Within this, protection sales increased to £430 million (2024: £398 million), representing 8% growth year-on-year and delivering a market share of 8.4%.
Equity release mortgage sales nearly doubled to £181 million, up from £94 million in 2024, with market share reaching 6.9%.
Sales of Smoothed Managed Funds rose to £123 million (2024: £89 million), while savings and retirement sales totalled £802 million, down from £831 million the previous year.
Operating expenses (excluding commission payments) fell to £145 million from £153 million in 2024, reflecting cost control despite inflationary pressures. Total operating expenses were £248 million (2024: £244 million).
The business also reported continued investment in digital capabilities, including self-service portals, web chat and call handling improvements aimed at enhancing customer and adviser experience.
LV= said service levels remained strong, with customer feedback measured through net promoter scores rated as “excellent”.
During the year, LV= enhanced its fixed term annuity proposition, enabling new customers to become eligible for a mutual bonus after 12 months. The insurer said this represents the first with-profits fixed term annuity in the UK to offer customers a share in business performance.
The mutual also progressed a wider transformation programme across its protection business, including new digital platforms designed to improve journey times, claims handling and self-service functionality.
Chief executive David Hynam said the results demonstrate “consistent delivery” for members, supported by strong capital fundamentals and improved investment returns.
He added that the business remains focused on long-term value, continued investment and maintaining financial resilience, supported by its 202% capital coverage ratio and £370 million surplus.
LV= also reported that its credit rating from S&P Global Ratings was upgraded to BBB with a positive outlook during the year, reflecting its underlying financial strength.
Looking ahead, the insurer said it will continue to prioritise member value, capital discipline and targeted investment as it navigates competitive market conditions.
