LV has confirmed that it is in “exclusive discussions” regarding a potential transaction with private equity firm Bain Capital, dismissing reports that talks with Royal London were still happening.
LV confirmed this morning (October 2) that discussions with the investor were ongoing but stressed it was not definite that a deal will be agreed.
It also said there was not “any certainty as to the terms on which any such transaction might proceed”.
The two companies are expected to make further announcements “if and when appropriate”.
In a statement, LV said: “As previously stated, LV=’s board’s focus is on maximising long-term value for its members and ensuring the business continues to be operated in their best interests, following the disposal of the general insurance business.”
The announcement follows reports from earlier this week (September 28) that Royal London was looking to take over LV to create a large-scale mutual.
However, this is no longer the case as LV confirmed it was in exclusive talks with Bain Capital and is not talking to any other businesses.
Back in June, it was reported that LV had 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 also said it was 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.
The company sold a 49 per cent stake in its general insurance business to Allianz for £500m in December 2017 and on December 31 the remaining 51 per cent holding was sold to the German company.
According to LV, it was paid a total £1.08bn for its general insurance arm.
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