Investment and insurance group LV= has launched its newly acquired flexible retirement solutions business, following the successful completion of the acquisition of the new business operations of Tomorrow from Swiss Re.
The acquisition provides an immediate step change in the scale of the LV= Life and Pensions business, which becomes a GBP100 million per annum APE business. In addition, LV= immediately takes strong market positions in three important retirement income sectors – flexible pensions including self-invested personal pensions, specialist enhanced annuities, and lifetime mortgages/equity release.
These new product areas offer the opportunity to utilize the fund management expertise of the friendly society’s asset management business – LV= Asset Management – to improve options, flexibility and returns for policyholders. LV= will distribute its range of flexible retirement products through the intermediary market, via an established and well-regarded IFA distribution network.
In a separate transaction LV= has reached agreement for the transfer back in-house of its life and protection processing operation currently provided under an outsourcing agreement by an external supplier. The transfer of staff and services is expected to be completed by April 2008.