122 LV= Annual Report 2012
Notes to the financial statements continued
31 December 2012
Other disclosures
This section details other disclosure matters, comprising: related party transactions, directors’ emoluments, with-profit actuary
details and other relevant Society information.
47. Related party transactions
The Group and Society enter into transactions with key management personnel in the normal course of business. All transactions
between group companies took place in accordance with relevant agreements. Details of significant transactions carried out during the
year with related parties are as follows:
a) Sales of insurance contracts and other services
The Group has related party transactions with the LV= Employee Pension Scheme. Until 31 October 2011 the Society provided fund
management and administration services to the Scheme.
In 2012 and 2011 the following amounts were charged to the Pension Scheme for the following services:
Fund Management Administration
Services Services Total
2012 2011 2012 2011 2012 2011
£m £m £m £m £m £m
Liverpool Victoria Friendly Society Limited – – – 2.4 – 2.4
Liverpool Victoria Asset Management Limited – 1.1 – – – 1.1
As at 31 December 2012 the LV= Employee Pension Scheme owed the Society £nil in respect of administration services (2011: £1.8m).
b) Other related parties disclosure
As disclosed in Note 41, the Society has granted a contingent loan facility to the RNPFN fund, a closed fund within the Group, which is
disclosed in contingent liabilities.
c) Key management compensation
Key management personnel of the Group comprise all executive and non-executive directors and senior management. The summary of
the compensation of key management personnel for the year is as follows:
Group
2012 2011
£’000 £’000
Short-term employment benefits 6,139 6,740
Other long-term benefits 2,865 2,746
Post-employment benefits 216 440
Termination benefits - 240
Total compensation of key management personnel 9,220 10,166
The Society makes contributions to the LV= Employee Pension Scheme of an average of 17.8% of pensionable salaries (2011: 17.1% of
pensionable salaries), subject to annual allowance limits, in respect of all permanent staff, including executive directors.
Included within key management personnel are all the vendors of ABC Insurance Solutions Limited who, as part of the acquisition in
2006, entered into a contract with the Society. Further details are disclosed within Note 40.
The aggregate premiums payable for the year by the Group Executive and Non-Executive Directors in respect of the Group’s products was
£57,827 (2011: £58,756).