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Back in December 2020, we formally announced that we had reached an agreement with Bain Capital, a leading global investor, to acquire the LV= business. The transaction will see Bain Capital, a leading global investment firm with extensive insurance industry expertise, purchase the LV= business. This means we would no longer be a mutual in structure. However, the transaction provides an excellent financial outcome for your clients, greater security for With-profits members and an unrivalled commitment to LV=’s prospects, business and people.
There’s nothing that your client needs to do right now, we just wanted to let you know the news.
We’re still looking after you, your client and their policy in exactly the same way, and will continue to do so.
Find out about our Member Virtual Event we hosted in back in February.
We’ll write to all eligible LV= members inviting them to vote on our proposals at a Special General Meeting (SGM).
The Board will recommend that members support the sale of the business to Bain Capital and a member pack will be sent out to them ahead of the Special General Meeting (SGM) outlining all of the key information that they’ll need to help inform their vote.
We are progressing well on our proposals to sell the LV= Life and Pensions business to Bain Capital and to provide LV= members with all of the information they need to make an informed vote. As it is important that we complete this complex work we have built in some additional time to extend our engagement with a range of stakeholders; our original date to hold a Special General Meeting (SGM) in the first half of this year has therefore been pushed out.
As soon as the date of the Meeting has been finalised we will announce the date on this dedicated area of our website. At this point we will also provide further information on the member engagement programme which will comprise of:
This transaction follows a Board-led, comprehensive and rigorous strategic review asking the question ‘What is best for our members?’ Following the sale of the General Insurance business, it was clear that LV= would need significant long-term investment to be successful in a very competitive life and pensions market.
As a standalone life and pensions company we have big ambitions for growth. However, in a market dominated by global insurers, LV= requires significant long-term investment to realise these ambitions.
The scale of this investment, together with the time needed to deliver growth and the age of our With-profits policies, means that many of these With-profits members would not see the rewards before their policies mature.
The Board were unanimous in their decision that the deal with Bain Capital delivers an excellent financial outcome for members, plus greater security for With-profits members.
The transaction means that we’ll secure external investment to fund our ambitious growth plans and to develop our footprint in the UK life insurance market through our long established and well-respected LV= brand.
Throughout the strategic review the Board of Directors took advice from legal and financial advisers and the With-Profits Committee.
The transaction will see Bain Capital acquire LV=’s savings & retirement and protection businesses. The With-Profits Fund will be ring-fenced and closed to new business allowing the capital to be distributed.
The precise details of how the distributions will be calculated have been determined by the Board following consultation with the With-Profits Committee. Full details will be included in a member pack our eligible members will receive.
While our corporate structure as a mutual will change, our culture and values will remain the same. We’ll continue to put customers, employees and financial advisers, like you, at the core of everything we do. Bain Capital is fully bought into what LV= stands for and is committed to our plans and strategy for growth. Together we’re excited by the opportunities that lie ahead in this next phase of LV=’s journey.
The partnership with Bain Capital will provide LV= with the investment needed to grow its leading brand and strong product set for the benefit of you and your clients.
Bain Capital is a leading global private investment firm. Bain Capital invests across a number of industry sectors and the Bain Capital team leading the LV= transaction have particular extensive experience working with insurers.
It’s been a leading investor in the UK for the past fifteen years, investing hundreds of millions of pounds in a range of different businesses to support strong management teams grow their businesses.
If you have any queries about this proposal please speak to your LV= Account Manager or you can email [email protected]
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