LVJun 12 2020

LV mulls sale of pensions business

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 LV mulls sale of pensions business
ByAmy Austin

Insurance giant LV is weighing up options to sell its life insurance and pensions business, according to reports.

According to Sky News, the provider has sought advice as to whether the sale of its life and pensions business would be in the best interest of it 1.3m customers.

It is also looking into a joint venture option, similar to the one it struck with German insurance giant Allianz when it sold its general insurance business in 2017.

This agreement then led to LV selling its remaining stake to Allianz at the end of last year.

It is understood that corporate finance advisory Fenchurch Advisory Partners, which also advised Royal London on the sale of its Ascentric platform, is advising LV on its options.

A spokesperson for LV said: “We do not comment on market rumour and speculation. We remain focused on continuing to support our customers, members and partners during the Covid-19 crisis.”

Last year (March 2019), LV started plans to convert to a mutual company limited by guarantee, saying its friendly society status restricted its development.

This was implemented earlier this year and means LV is now governed by the Companies Act, but it did not change the company’s mutual status. 

Similar to a friendly society a company limited by guarantee does not typically have shareholders or share capital. It has members whose personal liability is limited to the amount they agree to contribute towards the debts of the company.

Fenchurch Advisory Partners has been contacted for comment.

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