After weeks of speculation that Royal London would take over LV’s life and pension business, “exclusive discussions” between LV and Bain Capital have been confirmed instead.
LV revealed that talks with the private equity firm were ongoing, but emphasised that there was no guarantee that a deal would be agreed, nor is there “any certainty as to the terms on which any such transaction might proceed”.
The “exclusive discussions” come in the wake of recent reports that Royal London were in late-stage discussions with LV, and speculation that a large-scale mutual worth more than £500m would be created. These reports have now been dismissed.
In a statement, LV said: “As previously stated, LV=’s board’s focus is on maximising long-term value for its members and ensuring the business continues to be operated in their best interests, following the disposal of the general insurance business.”
LV has stated it is looking for a joint venture similar to the sale of its general insurance business to Allianz in 2017, and sought advice about the sale of its life and pension business back in June.
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