Mutual insurer LV = members will get £ 100 each if they support Bain buyout By Reuters
By Carolyn Cohn
LONDON (Reuters) – UK mutual insurer LV = on Wednesday offered to split £ 111million ($ 151million) among its members, giving them £ 100 each, if they back the capital firm’s buyout plans -investment Bain Capital.
The UK financial watchdog said last week it had raised no objections to the takeover, after a report by an all-party parliamentary group of lawmakers said in April that it was very difficult for LV members = assess whether demutualization was in their best interest or not.
Members of the insurer are due to vote on the £ 530million takeover on December 10. The deal would end LV = ‘s mutual status, meaning it would no longer be owned by members. It would take the support of 75% of voters to move forward.
LV =, founded in 1843 and formerly known as Liverpool Victoria, also said it would offer an additional £ 101million in future payment enhancements to the ‘with profit’ policy for all members with LV = policies with eligible profit.
Profit policies, which smooth the ups and downs and are designed to make investments less volatile, will be closed to new clients after the Bain takeover.
The Bain deal was first announced in December 2020, when LV = said it had received 12 formal offers.
“Bain Capital was the only option that provided both a great financial bottom line for members and unparalleled support for the LV = brand, our people and our locations,” Chairman Alan Cook said in a statement.
LV = CEO Mark Hartigan told Reuters that the deal with Bain would include an injection of £ 168million to support the company’s two defined benefit or final salary pension plans.
The Financial Conduct Authority has criticized LV = ‘s communication with its members. Hartigan said LV = had waited for legal and regulatory approvals before they could provide full details of the deal, but is now hosting webinars on it with members and financial advisers.
LV = finalized the sale of £ 1.1 billion of its property and casualty insurance business to German insurer Allianz (DE 🙂 in January 2020.
($ 1 = 0.7337 pounds)
Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.