Financial advisers reveal their good, bad and indifferent dealings with LV as the company seeks a new chief executive for the first time in 10 years.
Today (15 April) it was announced Mike Rogers will step down from provider LV as soon as a suitable successor is found, bringing his 10 year tenure at the helm to a close.
By the time Mr Rogers joined what was then Liverpool Victoria in 2006, it had long stopped the door-to-door selling of ‘penny policies’ that had made its agents a regular sight in working class neighbourhoods.
But according to chairman, Mark Austin – who hired Mr Rogers as CEO all those years ago – the company was in dire need of modernising.
“In 2006 the business was unfocused with no great clarity of mission or objectives and a tired brand,” Mr Austin told FTAdviser.
“It had diversified too far into areas like banking where it didn’t have a significant market position, a general insurance business leaking money and customers, and a life business relying on the romance mutuality would provide the reason for people to buy.”
Fast forward 10 years under Mr Rogers’ leadership and the company’s fortunes under the rebranded LV love heart logo are virtually unrecognisable, moving from a £20m loss to a £195m profit in 2015, and going from two million to almost six million customers.
“The transformation from Liverpool Victoria to LV was based on bringing the clarity and focus that had been missing, building scale and running the comany as a professional business. Mike was the architect, designer and implementer of that plan,” Mr Austin said.
But what do hard-to-please advisers have to say about this “transformation”? Opinions are mixed.
Phil Stevenson, director and Chartered financial planner at Cheshire-based Ark Financial Planning, said he thinks the need for focus and scale at the company remains.
He only uses the provider “to a limited extent” because he finds its offering too broad.
“LV wants to be an all embracing business operating in all areas and markets without ever having the scale to make significant impact. Other providers have looked to provide more focus to their offering,” Mr Stevenson said.
Darren Cooke, director of Derbyshire-based Red Circle Financial Planning, said he is impressed by changes at LV in the 10 years since Mr Rogers became CEO, but has yet to be tempted by what it has for sale.
“I don’t use LV, I keep having a look but I haven’t been tempted so far,” he said.
“It will be interesting to see if LV has planned well for a successor to continue what Mr Rogers has done and move the business forwards.”
Lee Robertson, chief executive at London-based Investment Quorum, also said he doesn’t use many of LV’s products – but is a huge fan of their client education material, especially around pensions.
“It’s very innovative, demonstrating real world solutions to real world financial and pensions issues,” he said.
“Very visual and engaging, breaking complex issues down into understandable but sized pieces with good use of visual explanation media.”
But Steve Hennessy, Chartered financial planner at Buckinghamshire-based Myers Davison Ginger said he is a firm supporter.
“I’ve always found their business development managers to be easy to get hold of and knowledgeable, backed up by competitive products,” he said.
“I think LV has adapted well to the changes in pensions landscape, and Joe Public responds positively to the brand.”
Quickfire questions we put to LV’s departing CEO Mike Rogers
Q: What would you say has been the biggest change to the financial services landscape in the last ten years?
A: Growth and impact of digital plus increased regulatory scrutiny.
Q: How has LV - and providers more generally - had to change and adapt in that time?
A: Become more customer focused, hold more capital and invest more in technology.
Q: What was the biggest challenge when you took over in 2006?
A: Sorting out the strategy.
Q: What would you say is your biggest success during your times as CEO at LV?
A: Creating and building the LV brand and our employee engagement scores.
Q: What are your plans now?
A: Too early to say!
Q: Where do you see the industry heading?
A: Be more customer-centric and embrace digital properly or die.
laura.miller@ft.com
