Liverpool reaps the rewards of shake-up

The firm, which trades as LV=, said life and pension sales rose 7.5 per cent to 92.2m in 2009, while its general insurance business moved into profit a year ahead of plan.

LV= posted underlying profits of 44.2m for 2009, up from 2.3m.

But on a reported pre-tax basis the group remained in the red with losses of 91.4m due to the cost of buying equity protection for member policies, the pumping of cash into its capital reserves and as a result of investment fluctuations.

It attracted 400,000 more customers in 2009, taking its total to 3.8 million up from 3.4 million in 2008.

And the Bournemouth-based group said trading had started strongly this year, with group-wide sales up "significantly" in the first quarter.

It has led a turnaround since 2006, rebranding as LV= and pulling out of banking to focus on the general insurance market.

The firm has made a series of acquisitions to bolster general insurance, including Highway Insurance in October 2008, which helped pull the division out of the red last year, with profits of 7m against losses of 30.1m a year earlier.

The group has meanwhile benefited from a new tie-up with supermarket Asda, which helped drive over-50s life insurance up by 27 per cent.