The latest confirmation from LV= dismisses previous media speculation about its ongoing talks with Royal London
LV= and Bain Capital in exclusive talks regarding a potential deal. (Credit: aymane jdidi from Pixabay)
British life insurance company Liverpool Victoria Financial Services (LV=) revealed that it is in exclusive talks about a possible deal involving US-based private investment firm Bain Capital.
Founded in 1984, Bain Capital is among the major private multi-asset alternative investment firms in the world with nearly $105bn in assets under management.
Recently, LV= confirmed media reports that it has been in discussions with multiple parties for a potential takeover deal.
The British insurance firm said that its board of directors is focusing on maximising long-term value for its members. Furthermore, the board wants to make sure that the business continues to be run in the best interests of the members, following the sale of the general insurance business in 2019.
LV=, Bain Capital talks may or may not result in a deal
LV= stated: “Discussions between LV= and Bain Capital are on-going and there can be no certainty that any transaction will be agreed, nor any certainty as to the terms on which any such transaction might proceed. Any transaction would also be subject to regulatory approval.
“The two organisations will make further announcements if and when appropriate.”
Recently, the insurer said that it continues to trade well having effectively adapted to the impact of Covid-19 with a strong capital coverage ratio of more than 200%.
Royal London was reported to be one of the potential buyers of the remaining business of LV=. Sky News reported that talks between the parties are at a late stage and could result in a merger of their pensions, life insurance, and asset management businesses with more than 10 million customers.
LV=’s confirmation of its exclusive discussions with Bain Capital dismisses reports about the former’s talks with Royal London, reported FT Adviser.
In January 2020, the British insurer wrapped up the sale of its 51% stake in LV General Insurance Group (LV GIG) for £578m to Germany-based Allianz Group.