Sharing our future plans with you
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.
We’re here to help your clients to protect their income and loved ones, and in later life, build and release their wealth
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.
Looking out for our members' best interests
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.
Benefits for you and your client
- The partnership of LV= and Bain Capital has exciting potential to deliver even more for you and your clients. We intend to continue to improve the competitiveness of our products and enhance our digital capabilities to better integrate with your systems and make it easier for you to do business with us.
- Bain Capital’s long-term investment is also a strong endorsement of the attractiveness of the UK life and pensions market. The clarity it provides around the future of LV= represents a strengthening of our commitment to the market and means you can continue to recommend LV= with confidence.
Benefits for our members
- If, and once, the transaction has been fully completed all members will benefit from a cash payment to compensate for loss of mutual membership.
- With-profits members will also see an increase in pay-out when their policy comes to an end.
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
Our culture and values won't change
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.
LV= members will have the right to vote and express their views on this proposal
- We’ll write to all our eligible members in the first half of 2021 inviting them to vote on our proposals.
- The member information pack that we’ll send out in the first half of next year, will go into more detail about the proposals, what it means for members and how they can express their views.
- Once we’ve consulted with our members and the vote has taken place, the transaction is subject to a legal process and approval from our regulators - the Prudential Regulation Authority and Financial Conduct Authority before being finalised. We expect the transaction to be completed by end 2021.
Let's talk
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.
For TextDirect call 18001 followed by the phone number