MPs to investigate £530m potential sale of LV=

Written by Adam Cadle

08/02/2021

MPs are to investigate the £530m potential sale of LV= to private equity firm Bain Capital amid fears that policyholders and members could lose out.

According to The Guardian, the takeover has proved controversial as members and policyholders have yet to be given full details of any benefits they might receive or why Bain’s offer was selected over a number of others.

The deal will require approval from 75% of members who vote but LV= wants to override a rule under which at least half of all members must approve demutualisation.

Gareth Thomas, the MP for Harrow West and chair of the all-party parliamentary group for mutuals, said: “Members of the parliamentary group are concerned at what impact the sale will have on LV= members, the insurance industry and competition and choice in financial services. We are also interested in whether the LV= decision reflects weaknesses in the government and regulators’ views and support of mutuals.”

LV= chairman Alan Cook and chief executive Mark Hartigan have been invited to give evidence, as well as mutual sector experts and financial analysts. MPs also want to hear from individuals and organisations with an interest in LV=. The deadline for the submission of written evidence is 5 March and oral evidence sessions will be heard over the next two months.

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