Sharing our future plans around Bain Capital with you

With-profits members hold a long-term investment product where the premiums are pooled together in a fund and invested. These policyholders receive bonuses that reflect the performance of the investments plus additional bonuses at the discretion of the Board.

The policies are primarily made up of longer-term financial products including endowments and whole-of life policies that are no longer actively marketed.

Non-profit members have an insurance policy where the sum insured and benefits are fixed from the start of the policy and the policy doesn’t attract bonuses e.g. Income Protection or Critical Illness Cover.

Anyone can become a member of LV= by owning a member-qualifying product with us. This includes all of our current and historic products, apart from our equity release products (for example Lifetime mortgage and Flexible Lifetime mortgage).

Customers who have general insurance products (for example car and home insurance) are also not members - these products are sold by LV= General Insurance Group, a subsidiary of Allianz.

All members are expected to benefit from a one-off member payment.

For LV= With-profits members, the transaction delivers an excellent financial outcome giving them greater security by:

• Removing business risk for LV= With-profits members by releasing capital held which is no longer required to finance future investment in new business activities and ring-fencing the With-Profits Fund.
• Providing an expected enhanced payout at policy exit or when income is received from it – with the transaction providing up to a 40% uplift to the total capital available for distribution to eligible members with an LV= With-profits policy.
• Fixing a schedule of administration and investment management charges.

This payment is for all existing eligible members. This one-off payment will be made to all existing eligible members with an active policy as at the date of the Special General Meeting (SGM). New policies received from the 1 March 2021 are not be eligible for the one-off member payment.

We expect payments will be made in 2022 once the member, regulatory and legal processes have fully completed.

Please note that the payment will be per member, and not for each member qualifying policy held.

Eligible LV= With-profits members are expected to receive an enhanced payout at policy exit, or when they start to receive an income from it, if they hold a With-profits policy at the date of the Special General Meeting (SGM) - and the overall vote is in favour of the transaction. This will remain the case even if after this date your policy lapses or you leave.

The enhancement will be added to policy payouts whenever they occur, which would include lump sum payments on death, surrender or maturity, and regular income or partial withdrawals from relevant With-profits products.

Members who take out an LV= With-profits policy taken out from the 1 March 2021 are expected to benefit from the enhanced payout if they hold an LV= With-profits policy at the date of the SGM and the overall vote is in favour of the transaction.