LV= previously sold its general insurance business to Allianz last year
LV= has confirmed today that it is selling its savings and retirement, and protection business to US private equity firm Bain capital for half a billion pounds.
The deal - assuming it receives approval - will see its 1.3m member owners received a substantial payout, thus ending its 177-year existence as a mutual.
The insurer sold its general insurance business to Allianz last year for £1.1bn.
LV= chairman Alan Cook commented: “As a newly standalone life and pensions business in an increasingly competitive market, the board recognised that LV= required significant long-term investment to be sustainable.
”This transaction is the culmination of an extremely thorough and robust strategic review – followed by a structured sale process to secure the best long-term future for our members, employees, other stakeholders and the business.
”The Board is delighted to have secured an attractive price and unanimously agreed that the transaction with Bain Capital presents an excellent financial outcome for all our members, as well as offering an unrivalled commitment to LV=’s future prospects, business and people.”