LV With Profits
Liverpool victoria With Profits
RWP Research Findings, Overview and Comments
LV= is a traditional mutual society; making it unusual in today’s With-Profits market-place where the majority of With Profits funds are now run by shareholder owned insurers. Their with-profits book includes the policies of the company formerly known as The Royal National Pension Fund for Nurses (RNPFN).
LV= is the current brand name and style of Liverpool Victoria.
The LV= With Profits position is strong compared to most of the rest of the market. They are traditionally seen as one of the better companies in this sector. As a mutual society they retain some, if not most, of the traditional hallmarks of the with-profits concept. Including for many policies guarantees on pay-outs on maturity or at retirement; and with some policies guaranteed rates of income in payment.
A mutual society is one where its members effectively own the business.
They generally have (comparatively) good With Profits performance, but this can vary depending on the type of policy and when it was taken out.
They also run both conventional and unitised With Profits policies; this distinction can be important as it can affect the guarantees and future prospects for policyholders to consider.
We assess LV= as a company easy to deal with, providing transparency and they are financially strong. However in reviewing policies for With Profits investors we see a wide mix of past performance, depending on when a policy was taken out and what type of policy it is. Some past performance is poor; some is good. Some policies have compelling reasons to hold onto them, some are clearly risky with limited reward and offer policyholders limited value. On balance we feel many LV= policies represent the better end of the market; avoiding some of the difficulties other providers have experienced.
However this should not breed complacency as with any company, your position will be dependent on a range of factors - you may be holding something solid or something flaky; we recommend if you hold a With Profits policy it should be fully reviewed on its own merits to judge how it is has performed and its future prospects.
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Company ownership position
LV= is a brand name of Liverpool Victoria which, as already mentioned, is mutual society, owned by its members.
Liverpool Victoria Friendly Society Limited was founded in 1843 as a burial society. It is the UK’s largest friendly society and, as a mutual organisation, has no shareholders, being owned by its members. The Society is incorporated under the provisions of the Friendly Societies Act 1992. It is authorised by the Prudential Regulation Authority (the “PRA”) and regulated by the Financial Conduct Authority (the “FCA”) and the PRA.
The Royal National Pension Fund for Nurses (RNPFN) was established by Sir Henry Burdett in 1887 to help nurses make provision for their retirement or ill-health. It provided savings, pension and investment products exclusively for healthcare workers and their partners. LV= acquired the RNPFN business on 31 December 2001, and the interests of RNPFN policyholders are looked after by a Supervisory Board that was set up at that time.
The administration of all RNPFN policies is carried out at the LV= head office in Bournemouth
LV With Profits funds
There is one With Profit fund in keeping with their mutual status; this fund sits behind a variety of different product types e.g. bonds, pensions or annuities and the terms applying – and therefore the return – are dependent on the product terms and which product a policyholder has. The actual management, performance and other features of the fund and the various product types can be found by using the links below or please contact us and we can help you get all the individual information on your policy:
For the latest with-profits bonus information please click here:
For information on how LV= approach the management of their with-profits, including their current asset allocation mix and customer friendly documents on each product type please click here:
Please remember that any of our summary findings or conclusions are general; an appraisal of the general position for that company. There will be situations where an individual policyholder with a company that is ‘good’’ may want to look at surrendering or transferring their policy (for example to secure a guarantee or because it does not suit their risk position), likewise there will be situations where policyholders with a ‘poor’ company want to stick with what they have (for example because the penalty of exiting will be too great). Nothing can replace getting a report based on your unique circumstances; it is only this unique, personalised report which will provide the information that will instruct you on your circumstances regardless of the company and our general comments.