Fixing costly gadgets dents LV's car insurance profitsComments Off on Fixing costly gadgets dents LV's car insurance profits
CARS with expensive gizmos are driving up the cost of motor repairs, taking a toll on insurer LV.
Profitability in its general insurance business, which includes car insurance, weakened after the cost of repairing vehicles outstripped premiums. “It is a growing trend. It’s just more expensive to repair them,” chief executive Richard Rowney said.
LV, which sponsors county cricket, has seen motor-claims inflation at 7.5% against its original forecast of 3.5%. There has also been a surge in expensive extras such as parking sensors and rear-view cameras, which cost more to repair.
General insurance operating profits fell to £22 million from £70 million last year, when results were flattered by a one-off release of cash reserves. Life insurance fared better, with operating profits up to £28 million from £12 million.