LV= sets out explanation for sale; urges members to vote for private equity bid

Vote on 10 December

clock • 4 min read

Amid a proposed sale that has turned public, with details and rumours flooding the news, LV= has set out another statement, this one explaining why it chose to sell to private equity firm Bain Capital and selected its bid among 11 others.

After the mutual sold its general insurance business in 2017 and 2019, which it deemed necessary to bolster its "weak capital position", the company said its 2020 strategic review came to the conclusion the business was a "sub-scale life and pensions business with an insufficiently strong capital structure and a loss-making new business unit, in need of investment".  As such, it said, a continuation of strategy to pursue a "business as usual" strategy as an independent mutual would not be fair for members given the "high execution risks" of doing so. It said the Bain Capital bid, whic...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Insurer

Aviva expects moderation after 44% protection sales boom

Aviva expects moderation after 44% protection sales boom

Rise follows AIG UK protection buy

Jen Frost
clock 14 November 2024 • 1 min read
Leveraging workplace health for economic growth

Leveraging workplace health for economic growth

Solving economic inactivity

Rebecca Ward
clock 06 November 2024 • 3 min read
New non-exec director for ABI

New non-exec director for ABI

Sacha Romanovitch takes the role

Cameron Roberts
clock 04 November 2024 • 1 min read