After a solid first nine months of the year, insurer LV has admitted there is just one thing standing between it and an improved underwriting result in 2013: severe weather events such as today’s storm.
“I have to admit we exchanged a few emails about the statement over the weekend,” finance director Philip Moore said from his home in North London, where he was stranded because of St Jude’s storm. “We had to laugh.
“It’s too early to say what impact it will have on us because most claims tend to come from flooding rather than the wind. If the flooding is heavy then it could affect our results.”
LV — an example of a successful financial mutual — posted life and pension sales of £117 million during the nine months ending September 30 and took in general insurance premiums worth £1.1 billion.
The company now has more than five million customers and also sells its products through Asda and Nationwide Building Society.
Moore said it had chosen to underwrite slightly less business this year because of lower motor rates across the industry.
However, he believes these have bottomed out and will rise soon.
He added: “We are optimistic about 2014 and are confident that the headwinds in the market will be weaker than in 2013... no pun intended.”
