Insurance giant LV= are in talks with Royal London over a possible merger and they have also announced another clear out of their boardroom.
In December the attempted takeover by Bain Capital fo LV= was thwarted as 69.9% shareholders backed the move, but this fell short of the 75% votes needed.
outgoing LV= chairman Alan Cook accused Royal London at the time of trying to “destabilise” the takeover after they announced they are interested in a merger deal.
The Bournemouth-based insurer also confirmed on Monday that Samuel Creedon will be interim chairman from 1 April as Cook is stepping down.
Creedon said, “We share a common interest with Royal London in a healthy and vibrant mutual sector so that we can both compete fairly with shareholder-owned firms.
“We have had, and continue to have, discussions with Royal London about if and how we can co-operate to the benefit of both sets of members and the mutual sector.
“In the meantime, we will continue to strengthen our independent business for the benefit of our existing and future policyholders.”
A Royal London spokeswoman said, “In light of the outcome of LV=’s special general meeting, Royal London issued a statement on December 10 outlining our belief that we could offer an attractive future for the members of LV= as part of a growing and well-capitalised mutual.
“We note LV=’s announcement and we can confirm we have had initial, exploratory discussions with them.
“There is no certainty that these discussions will result in a transaction and a further announcement will be made as and when.”
On Monday, LV= also confirmed a further boardroom clear-out following the failed Bain deal, revealing that David Barral, Alison Hutchinson and Luke Savage will all step down as directors next month.
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