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GEneral faqs

Frequently asked questions about our future plans

The rationale

Why can’t you stay as is/why does LV= need such a significant level of investment going forward?
Why is this transaction in the best interests of members?
Were there any other alternative options considered prior to the strategic review?
Why did you choose an external transaction with Bain Capital?
How did you agree a price of £530m from Bain Capital?
What were the proceeds of the sale of the LV= General Insurance business used for?

Bain Capital

What experience does Bain Capital have?
What is Bain Capital buying?
What will Bain Capital bring to LV=?

The voting and transaction process

Why is my vote important?
Do you need a certain number of members to vote?
How will I know the results of the votes?
Who is the Court and how is it involved with Vote 2?
If Vote 1 is passed and Vote 2 is not approved why is the one-off member payment less?

Business impact

Would Bain Capital run LV=?
How will this affect employees and the culture of LV=?
Are the Board or Executive team financially benefiting from the transaction with Bain Capital?
What is Bain Capital’s view on LV=’s corporate responsibility activities?
Who will manage and oversee the assets of the business if the proposals go ahead in full?
What place would Bain Capital have on the Board?

Customer impact: eligibility

What makes someone a member?
Are all policies eligible for the one-off member payment?
I have more than one policy, will I get more than one member payment?
If I have a joint policy will both of us receive the one-off member payment?
What happens if an eligible policy is in place at the date of the Special General Meeting (SGM) but ends before the transaction with Bain Capital completes?
What would a member be entitled to if their policy expires or matures before the votes take place?

Customer impact: financial benefits

 

What are the financial benefits of this transaction for members?
Why is there a one-off member payment made to both non-profit policyholders and With-profits policyholders?
When would members receive the one-off member payment?
How will the one-off member payment be made?
Will I get taxed on the one-off member payment or the payout enhancement?
How did you decide that £100 would be an appropriate and fair payment to members?
Why is the one-off member payment only £100? How was this arrived at?

You and your policy

Will my policies change/what protection do I have?
Will there be any impact to the customer service I receive?
I'm an Equity Release customer, what do the proposals mean for me?
I have a non-profit annuity paying a regular income. If the proposals go ahead would the amount of regular income from LV= change?
I have an ordinary branch pension policy which pays guaranteed regular income as an annuity. If the proposals go ahead would the amount of regular income from LV= change?
I have a unitised with-profits bond paying a regular income. If the proposals go ahead would the amount of regular income from LV= change?
I have a With Profits Pension Annuity policy or Pension Income Plus Annuity policy. If the proposals go ahead would the amount of regular income from LV= change?

More information

What is a With-profits policy?
What are Articles or Articles of Association?
What is a Scheme of Arrangement?