Our future

Our proposals in a nutshell

3 November 2021

Overview

Our proposed transaction with Bain Capital

Last year we announced proposals for Bain Capital to acquire the LV= life and pensions business. Since then we’ve been working with a number of stakeholders to develop a comprehensive Member Vote Pack outlining all of the details our members need about the proposals so they can  make an informed vote. 

In order to be successful in the highly competitive life and pensions market, we need significant investment to compete and achieve our ambitions for growth. 

If LV= was to use internal capital to fund this, the majority of members holding eligible With-profits policies would be unlikely to benefit due to their policies maturing before LV= sees the returns on that investment. The Board did not believe that would be fair for members. Under our proposals, it is Bain Capital that will fund this investment and they are expected to pay £530m plus interest in order to acquire the LV= business. The transaction presents an excellent financial outcome for all of our members and an unrivalled commitment to LV=’s prospects, business and people.

Benefits for all our members

  • A one-off member payment for all eligible members.
  • Continuation of existing customer policy benefits, including discounts on LV= General Insurance products.
  • Investment by Bain Capital to deliver technology improvements, development of existing and launch of new products and service enhancements for customers.
  • LV= to remain a UK regulated entity, providing ongoing protection from the Financial Services Compensation Scheme.
  • Continuation of the LV= brand, with Bain Capital taking ownership of the operational infrastructure and as the employer of staff.  

Benefits for members who hold eligible LV= With-profits policies

  • An expected payout enhancement of 0.1% for each complete calendar year they have held the policy from 1996 until the policy pays out.
  • Bain Capital taking responsibility for support of the ongoing business and exposure to future new business risks, currently assumed by LV= With-profits policyholders.*
  • The LV= With-profits business will be separated in a dedicated fund which Bain Capital will be unable to access.
  • Current bonus arrangements – mutual bonus and exit bonus – continuing for eligible policies, consistent with current practice.
  • Greater clarity around costs with defined cost schedules for the administration services and investment management provided by Bain Capital.
  • Continued oversight from the With-Profits Committee at the same level of governance as received today.

*Except in the unlikely and extreme circumstance such as the company that owns the fund becomes insolvent whereby some of the protection provided by internal ring fencing would fall away.

Specific information for RNPFN and Teachers policyholders

The votes

We’re asking members to cast two votes which will be considered on 10 December 2021

Vote 1

A Special General Meeting – to approve the acquisition of the LV= business by Bain Capital.

Vote 2

A Members’ Meeting – to approve the most efficient and effective way to complete this transaction.

The strategic review 

Having reviewed both the existing 'business as usual' plan and a potential closure option, the Board decided to explore the alternative option of a transaction with a third-party to understand if this would generate the capital needed to protect the future of the business and the interests of our members.

The Board believes it is in the best interests of our members to secure external investment and under our proposals it is Bain Capital that will fund this.

They came to the unanimous decision that the transaction with Bain Capital presented an excellent financial outcome for all our members and also gave an unrivalled commitment to LV='s future prospects our business as a whole and our people.

The partnership with Bain Capital will provide LV= with the investment needed to grow our leading brand and strong product set for the benefit of customers and financial advisers.

Our proposals - your questions answered

Why can’t you stay as is?
Why does LV= need such a significant level of investment going forward?
Why did you choose an external transaction with Bain Capital?
How did you agree a price of £530m from Bain Capital?
How will this affect employees and the culture of LV=?
Why is my vote important?
Are the Board or Executive team financially benefiting from the transaction with Bain Capital?

Contact Us

We're here for you if you have any concerns or questions

Call us

0800 066 5373

Non-profit members - Press option 1 
With-profits members - Press option 2 

Our phone line is open:
8am – 7pm Monday to Friday
9am – 1pm on Saturday

We’ve extended our usual opening hours to provide additional member information and support on our proposals.

For Textphone first dial: 18001. We will record and/or monitor calls for training and audit purposes

Email us

Non-profit members please email [email protected]

With-profits members please email [email protected]

Register for a webinar

Non-Profit Member Webinar

Register for the Non-Profit Member Webinar on 29 November 2021 at 11am

With-Profits Member Webinar

Register for the With-Profits Member Webinar on 29 November 2021 at 2.30pm

Q&A sessions

We’re running three virtual member Q&A sessions on 22 November, 3 December and 6 December.

Register for a member Q&A session

Write to us

LV=, Proposals for change, County Gates, Bournemouth, Dorset, BH1 2NF.