18 LV= Annual Report 2012
General Insurance Business
1,485
1,456
117
76
2012
2011
2012
2011
Gross written Operating
premiums (£m) profit (£m)
John O’Roarke
Managing Director of General Insurance £1,485m £117m
+2% +53%
53% increase in profits to £117 million. These profits were delivered despite a very
challenging year for the insurance industry as
a whole. The year began with severe storms in
January, followed by three separate flood events
Review of 2012 spread throughout the year, which generated a total
In 2012 the general insurance business delivered claims cost of £25 million. Our results were also
continued growth in both market share and impacted by a further increase in personal injury
profitability. We now insure three million vehicles, claims frequency. The increase came primarily
representing a motor market share of approximately from low-value whiplash claims, indicating that
11%, as well as a further 1.1 million policies across claims management companies and law firms
other business lines. Underlying operating profits were accelerating claims activity in anticipation of
climbed to a record level of £117 million, more changes in the law (the Legal Aid, Sentencing and
than £40 million up on 2011. Investment returns Punishment of Offenders Act – LASPO), which are
contributed £112 million (2011: £46 million) to due to take effect in April 2013. Despite these
operating profits. Our direct and broker businesses adverse influences we are pleased to report that
both contributed strongly to operating profits at we were still able to achieve a sub-100% combined
£64 million and £53 million respectively. operating ratio of 99.7%.