LV members reject proposal to sell to Bain Capital

AFM Comments on the vote by members of LV= to reject the proposal to sell to Bain Capital

10 December 2021

Martin Shaw, Chief Executive of the Association of Financial Mutuals, stated:

“The Board of LV has failed to make its case.  Sufficient members have voted against the proposal to scupper the plans to sell the business to Bain capital, and as a truly democratic business, the Board must now take a different path.

“We expect that the Board will have heard the strong dissent from many members, and the equally strong concern expressed by politicians, and so must determine how the best interests of members are secured for the future.  We think this will be by remaining in mutual hands, either as an independent business with a new and more visionary Board, or by a merger with another mutual.

“The problems in LV were a result of recent management decisions, a falling membership base and a challenging capital position. Those are not problems that affect other mutual insurers, who in fact increased market share in 2020, and who gained wide-ranging credit for their support to members during the pandemic.”

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