Home Business NewsBusinessBusiness Growth NewsInsurance giant in talks with rival Royal London over a possible merger

Insurance giant in talks with rival Royal London over a possible merger

by LLB Finance Reporter
7th Feb 22 3:12 pm

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 โ€œdestabiliseโ€ 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, โ€œWe 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.

โ€œWe 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.

โ€œIn the meantime, we will continue to strengthen our independent business for the benefit of our existing and future policyholders.โ€

A Royal London spokeswoman said, โ€œIn light ofโ€ฏthe outcome of LV=โ€™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.

โ€œWe note LV=โ€™s announcement and we can confirm we have had initial, exploratory discussions with them.

โ€œThere is no certainty that these discussions will result in a transaction and a further announcement will be made as and when.โ€

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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