LV's defence of high prices

randers

I called LV about my car insurance as the renewal was higher than other 5* companies for the same thing asking if they could lower the price to compete or I'd have to leave. Their agent told me "we can't, times are hard and we need to watch the pennies" .
How good does that sound to the general public trying and often failing to make ends meet?? Allianz Holdings profits last year £132m......😄

oldernonethewiser

I hope you said that is a very good idea and you need to watch the pennies too.

Then didn't renew your policy with them.

MacPingu1986

randers said:

I called LV about my car insurance as the renewal was higher than other 5* companies for the same thing asking if they could lower the price to compete or I'd have to leave. Their agent told me "we can't, times are hard and we need to watch the pennies" .
How good does that sound to the general public trying and often failing to make ends meet?? Allianz Holdings profits last year £132m......😄

Allianz Holdings' profits were £132M off revenues of £3,900M, that's a profit margin of 3.3% - that's a very tight margin all things considered.

To very roughly put it another way, only c3% of the costs of your policy constitute the profit, the remaining 97% simply covers costs.

dunstonh

How good does that sound to the general public trying and often failing to make ends meet?

Members of the public have to live within their means and so do companies.

 Allianz Holdings profits last year £132m......😄

Which is tiny.  However, you may wish to look at specific areas as each area of a company needs to be profitable.   Try looking at just household and motor.

DullGreyGuy

randers said:

I called LV about my car insurance as the renewal was higher than other 5* companies for the same thing asking if they could lower the price to compete or I'd have to leave. Their agent told me "we can't, times are hard and we need to watch the pennies" .
How good does that sound to the general public trying and often failing to make ends meet?? Allianz Holdings profits last year £132m......😄

In their last released results LV= GI had a combined operating ratio of 110.3% so for every £100 of premium they were paid they are paying out £110.30 in claims and operating expenses. They made a £73m loss.

Whilst the Group may have been more profitable each entity in the group has to stand on its own two feet and be profitable

If you think you are struggling imagine how it feels to be £73m in the red