UK insurer LV was hit by the “Beast from the East” earlier this year as its half-year results show a 25 per cent dip in profit.
LV blamed bad weather for a more than 50 per cent fall in operating profit in its general insurance business, from £49m at half year 2017, to £23m in the six months to 30 June.
LV said it had £17m of net claims as a result of the bad weather in February and March.
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Chief executive Richard Rowney said “they are a good set of result in the context”.
“You do get weather events, last year was very benign and this year we had the “Beast from the East”, if you look at the underlying health of the general insurance business it is in a very strong position with decent premium growth,” he said.
General insurance gross written premiums were up one per cent to £827m, from £817m the previous year.
In its life and group business operating profit was £19m, an increase of 171 per cent on the same period last year.
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Rowney said LVs partnership with German insurance giant Allianz was progressing well.
“Allianz is able to provide longer term investment as global player with their very deep pockets and that helps us leverage our position in the UK market place,” he said.
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