Back in February we announced that the LV= Board have agreed details on the eligibility criteria for the two different payments for members as part of the Bain Capital transaction. Details on the value of these payments will be shared with members, when we invite them to vote on our proposals.
The first payment is a one-off member payment, which will be made to all eligible members who hold an active policy at the date of our Special General Meeting.
The second payment is for eligible LV= With-profits policyholders only. They’re expected to receive an enhanced payout when their policy ends or when they receive an income from it.
We expect the one-off member payment to be made during 2022 once the member, regulatory and legal processes have fully completed. Additionally, from that date the enhanced policy payouts will start to be made for eligible LV= With-profits policies.
The actual amount of these payments will be determined by the Board after consultation with the With-Profits Committee. The Board’s decision will also be reviewed by an Independent Expert to ensure that the Board has achieved its primary aim of being fair to all members.
Any new policies taken out from the 1 March 2021 are not entitled to the one-off member payment. This reflects our announcement in December 2020 that we had reached an agreement with Bain Capital to acquire LV=, ensuring we act in the best interest of our existing members.
With-profits policies taken out from 1 March 2021 are still entitled to the enhanced payout, providing the policy is still active at the date of the Special General Meeting and the overall vote is in favour of the transaction.