Chief under fire from insurer LV = ousted after takeover failed | Economic news
The chief executive of LV=, the mutual insurance company, will fall on his sword seven months after a controversial takeover was rejected by members.
Sky News can exclusively reveal that Mark Hartigan, who has run LV= for just over two and a half years, will be leaving the business in the autumn.
His departure could be announced as early as Monday morning.
Russell Reynolds Associates, the main headhunter on the board, is said to have been hired to find Mr Hartigan’s successor.
The LV= board has come under intense pressure to sack Mr Hartigan since the collapse of a £530million takeover by Bain Capital, the US-based private equity firm , last December.
The deal had been criticized by members and politicians exasperated by plans to sell one of the most historic names in the UK insurance industry.
Mr Hartigan had insisted the Bain takeover was essential to safeguard LV=’s future, but was attacked when he later insisted he had a viable independent strategy.
In the aftermath of the failed deal, Royal London – LV=’s financial mutual – made a second merger approach, but those talks quickly fell apart.
LV= provides life insurance, pensions and investment products to millions of people across the UK.
It was established in 1843 and was previously known as the Liverpool Victoria Friendly Society.
The mutual has been revamped in recent years, having sold its general insurance arm to Germany’s Allianz in a two-step deal that ended in 2020.
In June, he announced the appointment of Simon Moore, a former Barclays executive, as the new chairman.
Mr Moore replaced Allan Cook, who resigned the same day the Bain deal failed to pass the threshold to vote on it, just weeks ago.
Mr Hartigan’s exit is believed to have been orchestrated by Mr Moore and his board colleagues.
It was unclear if he would receive any form of reward.
Anger at the LV= chief was amplified in March when it emerged he had accepted a bonus of over £500,000 for the last year, despite the calamitous handling of his future.
Mr. Hartigan, a former Zurich executive, presided over a turnaround in LV=’s business performance during his limited time with the company.
LV= is now expected to seek a seasoned industry executive who can drive its strategy of delivering new distribution deals to replace the outgoing CEO.
LV= declined to comment Sunday night.