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On 15 December 2020 we formally announced that we had reached an agreement with Bain Capital, a leading global investor, to purchase the LV= business. The transaction presents an excellent financial outcome for your clients and an unrivalled commitment to LV=’s prospects, business and people.
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 & pensions market.
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 deal 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 will be determined by the Board over the coming months following consultation with the With-profits Committee. You can find out more at LV.com/future
While our corporate structure as a mutual will change, our culture and values will remain the same. We will 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 are excited by the opportunities that lie ahead in this next phase of LV=’s journey.
If you have any queries about this proposal please speak to your LV= Account Manager or you can email [email protected]
Calls may be recorded.
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