24 LV= Annual Report 2012
Widening our distribution reach Our business strategy to focus on specialist
Our strategy to develop multi-channel distribution protection and retirement propositions across
capability has underpinned our growth and both IFA and direct to consumer channels means
momentum during the year. We were successful that we are well placed to respond to the changing
in launching a number of new partnerships and marketplace. We are less exposed to reduced
network arrangements and using our brand to demands from austerity measures as we don’t
grow our direct to consumer channel. focus on the wealth accumulation or regular
savings market.
Key highlights included welcoming the RAC as a key
partner in the distribution of our protection products We are also well positioned to take advantage
and the renewal of our successful relationship with of the favourable demographics over the coming
ASDA which sells our 50 Plus protection product. years. The ‘baby-boomer’ customer segment is now
at retirement age and faces the challenge of how
We extended our already successful strategic they’ll maximise the value of their accumulated
partnership with Sesame (with circa 25% market wealth in retirement. These customers are becoming
share of the adviser network) to include our more sophisticated with their purchases and we are
retirement solutions products. therefore expecting to see growth in the retirement
area of our business with a particular interest in
The adviser and corporate partner distribution equity release, enhanced annuities and specialist
channels remain important for us, however the pensions such as SIPPs.
introduction of RDR is likely to shift consumer
behaviour in the future and as a result we have The demand for protection products is expected
invested further in our direct to consumer channel. to remain relatively static as economic uncertainty
Our strong consumer brand should help us to continues and people continue to make every penny
access customers who may no longer be served count. However, we predict that there will be a shift
by the IFA market. in customer demand towards simple protection
products that meet modern day consumer needs.
We became RDR compliant well in advance of Alongside this there will be continued demand for
the regulatory deadline, ensuring that our products well designed and well serviced more complex
and charging structures were compliant with the products supported by a thriving protection adviser
new regulations. sector. We are well placed to support both areas in
2013 and expect to be able to gain market share as
We helped advisers maximise the opportunity a result of our focus and protection expertise.
that the new gender directive regulation
represented. Our unique guarantee, which allowed Our strategy remains unaltered. We want to be
customers to guarantee gender specific rates the UK’s leading retirement and protection
on protection business right up to the deadline specialist, focusing on profitable, fast growth
of 21 December, set us apart in the market. markets, where we have relative scale.
We were the only provider to offer this guarantee,
which demonstrated our commitment to help Our focus areas in 2013 will be to:
advisers do the best for customers. l Maintain growth through the launch of
new propositions within the protection and
Looking ahead retirement markets;
Despite a challenging economic and regulatory l Improve our margins through sophisticated
backdrop our life business has helped drive risk management expertise;
significant growth and value for our members over l Remain disciplined on costs, whilst investing
the past five years. in future capability to maintain our
competitive advantage;
Looking to the future, lack of clarity in the market l Invest in the training and development of our
remains, particularly with economic uncertainty people, equipping them to provide outstanding
continuing to affect consumer sentiment and service in our chosen niche markets; and
regulatory changes continuing to impact. However l Continue to manage exposure to market risk in
we remain confident our well established brand our investments.
and commitment to outstanding service and quality
products places us in an excellent position.