LV= profits plummet in first half of the year
Profits at insurance company LV= plummeted in the first half of the year after the firm was hit by soft home insurance sales and ultra low interest rates following Britain's decision to quit the European Union.
The Bournemouth-based firm said that pre-tax profits for the six months to June 30 plunged from £49 million to £1 million.
Boss Richard Rowney said: "The rating environment in general insurance remains mixed with rate increases in motor and a continuation of the soft market conditions in home.
"We are operating in a prolonged low interest rate environment with significant volatility and this has created challenging market conditions."
Operating profit at LV='s general insurance operation fell from £70 million to £22 million, while home insurance premiums were flat.
Life and pensions sales rose 17% to £1.01 billion and general insurance premiums income rose 8% to £785 million.
"I'm particularly pleased with the performance of our life and pensions business where total sales have broken through the £1 billion mark with growth in all product lines.
"We continue to see a trend towards blended and hybrid products following the Government's pension reforms as people increasingly exercise their ability to choose how they fund their retirement," Mr Rowney added.