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Catch up with the latest press releases from LV=

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LV= prices £350 million of subordinated debt

Press release: 16/05/2013

LV=, the mutual insurance, retirement and investment group, has priced £350 million of Lower Tier 2 qualifying debt. The subordinated notes will be issued by its parent company Liverpool Victoria Friendly Society Limited on 22 May 2013.

The strong demand from fixed income investors, which was evidenced by a heavily over-subscribed order book, has enabled LV= to price competitively at the low end of its target range with an annual coupon at 6.5%, underlining the attractiveness of the business, the strength of its recent performance and its future strategic direction.

This initiative further optimises the financial structure of LV= and follows a successful period of transformation. Since 2006 and the appointment of a new management team lead by Mike Rogers, CEO, LV= has become a scale player in its chosen markets in general insurance, life insurance and retirement solutions. It is now a well-established brand in its core markets and in 2012 delivered a group underlying operating profit of £126.2 million.

The proceeds from the debt issuance will be held for general corporate purposes and will count towards Solvency I capital resources. The subordinated notes have also been designed to be compliant with the requirements of Solvency II as they currently stand.

The notes have a first call date on the 22 May 2023 and are otherwise scheduled to mature on 22 May 2043 and are expected to be rated BBB- by Standard and Poor’s.

We are very pleased with the amount of capital raised. This will enable us to improve the capital efficiency of the group and support the growth of our core businesses in general insurance, life insurance and retirement solutions, in line with the strategy we have set out. The strong order book and successful placement is a powerful signal of investors' confidence in LV=’s financial strength and strategic plans.

Philip Moore, LV= Group Finance Director

Barclays and HSBC acted as joint book runners on the transaction.

The subordinated notes have not been and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States and any public offering of the securities in the United States must be made by means of a prospectus.


For further information please contact:

Emma Banks, emma.banks@lv.com, 0208 256 6714 / 07894 158 605


LV=

LV= employs 5700 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.