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.”
Future role of digital technology for financial mutual organisations
Whitecap Consulting, in partnership with the Association of Financial Mutuals (AFM) and a number of sponsoring partners, recently published a report analysing the strategic landscape for financial mutual organisations in the UK. The Whitecap team is summarising the key findings in a series of blogs.
In this article, Julian Wells and Chloe Thompson of Whitecap Consulting examine the role that digital technology will play for mutual organisations with regards to enhancing member engagement and delivering efficiency gains. The blog also discusses the current approaches to the adoption of technology across the AFM membership and poses a number of questions to CEOs and leadership teams that consider the potential opportunities surrounding technology and collaboration and the potential areas for future investment. Read more
The Mutual Ethos – Financial Mutuals, Friendly Societies, and Building Societies
Whitecap Consulting, in partnership with the Association of Financial Mutuals (AFM), recently published a report analysing the strategic landscape for financial mutual organisations in the UK. The Whitecap team is summarising the key findings in a series of blogs.
In this article, Luke Freeman and Chloe Thompson of Whitecap Consulting compare and contrast Whitecap’s research with AFM to its analysis of the building society sector, which was published in partnership with the Building Societies Association (BSA) earlier this year. Key similarities that can be identified include the successful deployment of a range of strategies and business models; organisations being extremely purpose driven; the importance of mutuality but also evidence of the associated challenges surrounding tangibility and member benefits; the appetite for collaboration, especially on technology and lastly, the challenge of navigating digital transformation in order to stay relevant to current and prospective members.
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Mutuality – People and purpose ahead of profit
Whitecap Consulting, in partnership with the Association of Financial Mutuals (AFM) and a number of sponsoring organisations, recently published a report analysing the strategic landscape for financial mutual organisations in the UK. The Whitecap team is summarising the key findings of the report in a series of blogs.
In the first of these articles, Richard Coates and Chloe Thompson of Whitecap Consulting examine what impact mutuality has on the culture, behaviours and decision-making that are evidenced across the AFM membership. They also discuss the future opportunities for mutuality in light of the increased focus on social purpose, purpose-driven organisations and associated trends including conscious consumerism. In doing so, they pose several key questions for CEOs of AFM member organisations.
Click here to read the blog
New report outlines plan to ‘future proof’ financial mutuals
18 November, 2021
A report published today by the Association of Financial Mutuals and Whitecap Consulting highlights the key areas of current and future focus for mutual insurers and friendly societies, and provides a set of strategic considerations for the CEOs and boards of these organisations.
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AFM CEO comments on the deal offered to LV= members from its sale to Bain Capital
4 November, 2021
If members feel aggrieved that the sale to Bain Capital for £530 million means that only £111 million will be paid to members in 2022 in return for their vote, with a 0.1% top up to with-profits policies for each year it was held, then that’s something they may have to get used to. Read more
Mutual providers of Child Trust Funds confirm commitment to support young people with a learning difficulty
20 October, 2021
The government has announced it will shortly be issuing a consultation designed to streamline the process by which children with learning difficulties can access their Child Trust Fund (CTF) when it matures. Read more
One year on: more than £600 million of Child Trust Funds remain unclaimed
1 September, 2021
It’s been a year (1 September 2020) since the first Child Trust Funds matured, but Britain’s youngsters are sitting on a goldmine of unclaimed cash. Read more
AFM confirmed as a Supporting Institution of the UN Environment Programme’s Principles for Sustainable Insurance
8 July, 2021
Later this year, COP26 in Glasgow will be a vital opportunity to re-focus attention on climate change. It feels in the UK like we no longer need the prompt, though the Government needs to command astonishing changes to the economy to achieve our goals. Insurance is- and will continue to- play a vital part in that change. Read more
Analysis of the strategic landscape for mutual insurers and friendly societies
July, 2021
AFM is delighted to be working in partnership with Whitecap Consulting and key industry partners to conduct an analysis of the strategic landscape for financial mutual organisations in the UK, which will culminate in a report later this year, with the findings to be presented at the AFM annual conference in October. Read more
AFM Comments on the report of the APPG for Mutuals’ on its Inquiry into the proposed sale of LV=
8 April, 2021
As a trade body supporting the mutual sector, the Association of Financial Mutuals is very grateful for the attention paid by the All-Party Parliamentary Group for Mutuals to the planned demutualisation of LV=. The decision to demutualise is a one-time, irreversible one, and cannot be taken lightly. The management of LV= has decided the business will be in a better position competitively under the protection of a private equity owner, Bain Capital. However, it has yet to put the case to its members, who will ultimately decide on whether the deal goes ahead. Read more
AFM announces new partnership project with Whitecap Consulting
8 April, 2021
The Association of Financial Mutuals is undertaking a strategic review of the future of the sector, in association with Whitecap Consulting. We are inviting potential sponsors to contribute to this important new project. Read more
