This one-off payment will be made to all existing eligible members with an active policy at the date of the Special General Meeting (SGM). New policies taken out from the 1 March 2021 are not 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.
Members holding eligible LV= With-profits policies are expected to receive an enhanced payout when their policy comes to an end or when they start to receive an income from it - if they hold an LV= 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 their policy lapses or they 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.
These eligibility criteria were discussed and agreed at Board and considered alongside advice from the With-Profits Committee who agreed the proposals were fair to LV= With-profits members.
Yes, there are three types of With-profits members who will not qualify for the enhanced payout at policy exit:
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.
Bain Capital will support the LV= Board and Management’s strategic plan, which includes (i) leveraging LV=’s strong brand to expand its presence in its existing markets, (ii) innovating and refreshing the customer experience, (iii) providing significant value and on-going stability and financial strength to LV= With-profits policyholders and (iv) continuing to strengthen LV=’s value proposition to its financial advisers.
This is a significant, strategic investment for Bain Capital, who is committed to the principles, values and long-term growth of the business. LV= has been around for 177 years and the transaction with Bain Capital provides us with the opportunity to build upon that heritage and position ourselves to be successful long into the future.
Bain Capital is also committed to providing the investment required to strengthen our digital capability, enhance the customer experience and broaden the products and services currently offered. This will allow us to continue to be competitive and deliver great products to our members.
Bain Capital’s proposal offers the strongest commitment to our people. Only they assured an ongoing presence in our three locations in Bournemouth, Exeter and Hitchin.