Royal London looks to purchase LV

Royal London has entered talks for a prospective takeover of LV’s pensions, life insurance and asset management businesses to create a new, large-scale mutual worth over £500m. It has been reported that Royal London plan to finance the takeover using the funds from its £600m debt raise in 2019. 

A stock exchange statement said: “Discussions are on-going and there can be no certainty that the discussions will result in any transaction being agreed or with whom.

“LV= continues to trade well having adapted effectively to the impact of Covid-19 with a strong capital coverage ratio in excess of 200 per cent.”

The takeover discussions come after LV sought advice over whether it should sell its life and pensions business in June this year, and revealed it was keen to enter a joint venture modelled upon its 2017 sale of its general insurance business to Allianz. 

The deal will advised by Fenchurch Advisory Partners, who also advised Royal London on the sale of Ascentric to M&G in May.