LV= to remain standalone mutual as merger talks fail

The interim chair of LV= has told members that “improving business performance” means it can now continue as an independent brand, after takeover talks with Royal London ceased last week.

Related topics:  Finance News
Rozi Jones
15th February 2022
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"We’ve seen strong progress in key areas and this provides the foundation for a mutual future."

In a letter to members, Seamus Creedon said: "The strength of LV’s business performance combined with its operational progress has allowed it to look at the business differently.

“As a result, the board believes in the continuation of LV’s status as an independent mutual brand and the opportunities this presents for our members, customers, employees and wider communities has strengthened.”

The latest announcements suggest a takeover or merger deal could no longer go ahead, with Creedon adding that the mutual is now “appropriately capitalised and trading well”.

This is despite previous chairman Alan Cook stating in November that LV had an "insufficiently strong capital structure".

In a statement last week, Seamus Creedon said: “We thank Royal London for its engagement and we look forward to operating alongside it as part of a vibrant mutual sector. The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the Board’s belief in, and commitment to, the continuation of our status as an independent mutual.

“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand. We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities. We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”

A spokesperson for LV said: "We’ve been clear that Royal London discussions ran alongside considering all options – including continuing as a standalone mutual. We’ve seen strong progress in key areas and this provides the foundation for a mutual future."

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