LV= in talks with Royal London over merger as more directors leave
7 February 2022, 14:24
It comes two months after the insurance giant’s failed takeover by Bain Capital.
Insurance giant LV= has confirmed it is in talks with rival Royal London over a potential merger, two months after its failed private equity takeover.
The company also announced a further clear-out of its boardroom.
LV= saw its attempted takeover by Bain Capital thwarted in December after 69.4% of shareholders backed the move, falling short of the 75% required.
At the time, Royal London suggested it would be open to a merger deal but outgoing LV= chairman Alan Cook accused the firm of trying to “destabilise” the potential takeover.
Mr Cook confirmed after the failed takeover vote that he intended to step down from his role.
The Bournemouth-based insurer also confirmed on Monday that Mr Cook will be replaced by Samuel Creedon as interim chairman from April 1.
In an update related to his appointment, Mr Creedon confirmed that talks are still taking place with Royal London.
He said: “We share a common interest with Royal London in a healthy and vibrant mutual sector so that we can both compete fairly with shareholder-owned firms.
“We have had, and continue to have, discussions with Royal London about if and how we can co-operate to the benefit of both sets of members and the mutual sector.
“In the meantime, we will continue to strengthen our independent business for the benefit of our existing and future policyholders.”
A Royal London spokeswoman said: “In light of the outcome of LV=’s special general meeting, Royal London issued a statement on December 10 outlining our belief that we could offer an attractive future for the members of LV= as part of a growing and well-capitalised mutual.
“We note LV=’s announcement and we can confirm we have had initial, exploratory discussions with them.
“There is no certainty that these discussions will result in a transaction and a further announcement will be made as and when.”
On Monday, LV= also confirmed a further boardroom clear-out following the failed Bain deal, revealing that David Barral, Alison Hutchinson and Luke Savage will all step down as directors next month.
