LV  

LV looks to grow adviser base following sale

LV looks to grow adviser base following sale

Growing its adviser base was “key” for LV as it moves to boost its digital capabilities after its acquisition by private equity firm Bain Capital.

LV said that following the sale of its savings, retirement and protection businesses to Bain Capital, it would look to strengthen its relationship with advisers.

Clive Bolton, managing director of savings and retirement at LV, said the mutual would invest more in technology to make it easier for advisers to deal with the provider. 

Mr Bolton said: “Over the past year we have been increasing our digital capability and broadening our smoothed managed fund range, making LV easier to do business with.

“Next year you will see an extension of this journey and we have a lot more we want to do around smoothed managed funds. 

“We will continue to add functionality to our bond, pension and Isa wrappers and capability and focusing on connecting this to adviser systems. This all takes investment and an agreed vision and this is what we are seeing from Bain.”

The firm also said it would look to stick to its mutual roots despite the sale meaning it would have to become the latest provider to demutualise.

LV said its culture and values will remain the same and it will continue “to put customers, employees and financial advisers at the core of everything”.

When asked what the provider will do the stand out in the pensions market once it no longer has its mutual status, Mr Bolton cited its smoothed managed funds and focus on mass affluent clients.

He said: “We will continue to focus on our smoothed managed fund range which has the perfect investment for these volatile times and will also continue to serve the mass affluent group who have investable assets at retirement of between £100,000 and £500,000. 

“We think this is an underserved group, particularly in the pension freedom world.”

The acquisition is subject to both regulatory approval and approval by LV members. It is expected to complete by the end of 2021.

As part of the deal, LV’s with-profits business will be ring-fenced in a separate fund and closed to new business.  

The capital available for distribution is expected to increase by up to 40 per cent, which will be used to increase payments to with-profits members as their policies mature.

Back in September there were reports Royal London was looking to take over LV to create a large-scale mutual.

But LV quickly confirmed it was in exclusive talks with Bain Capital and was not talking to any other businesses.

amy.austin@ft.com

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