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.