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3 February 2021

Time: Midday until 2.00pm

Hosted by: Jon Sellors – Head of Corporate Affairs

Speakers:

  • Alan Cook CBE – Chair
  • Mark Hartigan – Chief Executive
  • Dr David Hare - Chairman of the With-profits Committee
  • Alison Hutchinson – Board member and Chair of the Remuneration Committee
  • Mark Laidlaw – Corporate Strategy Director
  • Michael Jones - Company Secretary

We’re delighted that our members joined us for the Member Virtual Event.

The Event was held as a Zoom Webinar and the agenda included:

  • The background to the strategic review and benefits of the proposed transaction with Bain Capital.
  • The financial outcome for members and the next steps in the transaction process.
  • The role of the With-Profits Committee and its involvement in the strategic review.
  • Answers to questions submitted by members beforehand and during the Event.

You can watch videos of the Event or read the key questions and answers that were discussed, below.

Here are four separate film clips from the Event

Alan Cook CBE, Chairman

Strategic review and benefits of the proposed transaction with Bain Capital

Length: 10:35

Mark Hartigan, Chief Executive

The financial outcome for members

Length: 6:30

Dr David Hare, Chair of the With-Profits Committee

With-Profits committee role

Length: 8:01

Mark Hartigan, Chief Executive

The next steps

Length: 1:22

Questions and answers from the event

We’ve summarised below some of the key Questions and Answers that were discussed at our recent Virtual Member Event.

Financial benefits

What is the likely size of the payouts for members and when will they be paid?

What are the eligibility criteria for the compensation payment and also the enhanced payouts at exit to With-profits members?

Will my terminal bonus increase by 40% as a result of the sale to Bain Capital?

How will members’ interests be enhanced if Bain Capital will be extracting money for their dividends, loan repayments or management fees? This seems a contradiction.

Board

How much will the existing board of directors receive on top of normal salaries and bonuses? A cynic might suggest that the size of this payout could influence the board?

What will happen to the current Board if the transaction goes ahead?

Strategic review

I understand the Board of Directors asked the question "what is best for our members" at each stage of the transaction process. What criteria were used?

What is the role of the With-Profits Committee in the strategic review and Board’s proposal of Bain Capital?

LV= has always been a strong advocate of mutuality, what has changed? You refer to the many alternative measures the Board considered for the future of LV=. Was this option accepted unanimously? What other options were considered?

Policy impact

Is my pension investment, currently under management with LV=, safe?

What changes will members see if the transaction goes ahead?

Will the fund charges remain the same and will the asset mix change as the closed With-profits fund is wound down?

Voting process

What percentage of votes is required for this proposal to be passed?

What happens if you do not get 75% of members voting in favour of the transaction, what is Plan B?

Bain Capital

Why have you chosen Bain Capital when from their many mergers they appear to have no experience or expertise in life and pensions?

What guarantee is there that the long-term interests of members will be protected?

Future of LV=

In his letter to members, Mr Cook says that Bain Capital offers “an unrivalled commitment to LV=’s future”. What commitments have been made?

What are Bain Capital’s intentions for the future of the LV= business?