The final month of 2020 saw savings, retirement, and protection group Liverpool Victoria Financial Services Limited (LV=) agree to be acquired by private investment firm Bain Capital Credit LP for £530 million.
At the time, LV= announced that its with-profits business would be ringfenced in a separate fund as part of the deal. With-profits members were also promised increased payments and offered assurances that their long-term interests would continue to be protected by an experienced committee representing them.
Now a January 04 report by The Times claims that the same committee in fact wanted Royal London to be LV=’s buyer instead of Bain Capital. Citing a source, the publication said mutual life insurance and pensions giant Royal London was willing to purchase its peer for £540 million.
Read more: LV= acquisition agreed
According to The Times, the higher offer was favoured by the six-person panel in September last year. The committee acts on behalf of with-profits policyholders, which the report noted are over 300,000.
In December 2020, LV= stated: “A wide range of options and proposals were carefully considered by the board supported by independent financial and legal advice and in consultation with the independent with-profits committee to enable it to make an informed decision about which option to pursue.”
Insurance Business has reached out to both LV= and Royal London for comment. The latter declined to comment while LV= has not issued a response.
