LV=, a diversified financial services group, has reported operating profit before tax of GBP49.6 million for 2007, up from a loss of GBP20.1 million in 2006.

Total group profit before tax for the year was GBP56.4 million, down from GBP113.7 million in 2006, in line with lower market returns in 2007. The group reported a strong financial position with GBP1.3 billion of capital resources and GBP8 billion in assets under management.

Operating profit from the life and pensions business increased by 33% from GBP75.5 million to GBP100.1 million. On the other hand, sales of new general insurance products were up 39% to GBP89.2 million, with car insurance sales up 25%.

LV= said that it continues to have no direct losses from, or exposure to, the US sub-prime mortgage market.

Mike Rogers, group CEO of LV=, said: 2007 was the first year of our five year business transformation plan. Our underlying performance was encouraging and lays a solid platform for future growth.

We have come through a huge amount of change and strategic development. We are now well placed to compete successfully going forward and achieve our ambitious but realistic plans, and grow the value of the business for our members.