the votes are in

Results of the Special General Meeting and Members’ Meeting

Meetings held on the 10 December 2021

We asked our members to vote to secure the future of LV=

Votes were cast in advance by proxy, either online or by post. Members were also invited to join the online Special General Meeting (SGM) and/or Members’ Meeting where they could watch the proceedings and cast their votes live on the day.

Thank you to all of our members who voted on our proposals. In order for the proposals to be passed we required at least 75% of those who voted, to vote in favour.

  • Both Meetings were held online with the Board in attendance.
  • Vote 1 - to approve the acquisition of the LV= business by Bain Capital. 69% of members who voted supported our proposals but the required 75% threshold was not reached and so the acquisition with Bain Capital will no longer go ahead.
  • Vote 2 - 69% of members who voted supported our proposals to complete this transaction via a Part VII transfer but the required 75% threshold was not reached.  This means the Resolution has not been passed. 
  • The results for each of the Resolutions can be found in the table below.
  • Take a look at our next steps and our response to Royal London merger proposal

The majority of members who turned out to vote, voted in favour of the proposed transaction with Bain Capital, but the required 75% threshold was not reached

We will respect the outcome for all our members both the 31% who voted against the deal and the 69% who voted in favour as we find an alternative way forward

What does this mean?

  • The transaction with Bain Capital will no longer go ahead.
  • LV= remains strong, stable and well capitalised. 
  • There is no near term impact on current and future members, policyholders, advisers or employees, as a result of the vote.
  • Members can still expect the highest standard of services as they do today, with no changes to member policies and all the same safeguards in place.
     

Voting results - 10 December 2021

Results of Vote 1 and Vote 2 are as follows:

  Turnout  % In favour % Against 
Vote 1 - To approve the acquisition of the LV= business by Bain Capital  174,240  69%  31%
Vote 2 - To approve a Scheme of Arrangement which will effect a change to Article 14.23 in our constitution  175,460 69%  31%
  Turnout  % In favour % Against 
Vote 1 - To approve the acquisition of the LV= business by Bain Capital  174,240  69%  31%
Vote 2 - To approve a Scheme of Arrangement which will effect a change to Article 14.23 in our constitution  175,460 69%  31%

Watch the full recordings of the two Meetings held on 10 December 2021

Special General Meeting (Vote 1)

The meeting was held online with the Board in attendance

Length: 1hr 09min 22sec

Members’ Meeting (Vote 2)

The meeting was held online with the Board in attendance

Length: 22min 15sec

Next steps to secure long-term investment and secure future

As we outlined in our communication proposals, LV= needs to seek investment to remain competitive and to grow over the long term. However, this investment it is not a fair or appropriate burden for the declining number of With-profits members to bear.

We will work to find a way forward that will, we hope, enable us to provide the right financial outcome for members whilst balancing their wishes as reflected in the SGM vote, reflecting those voting both in favour and against.  

The Board has listened to member concerns about the loss of mutuality and so will in particular explore whether mutuality can be retained either on a standalone basis without undue risk to members, or through a merger with a larger mutual organisation.

The Board expects to provide an update to members as soon as it can in 2022.  


LV= response to Royal London merger proposal

LV= can confirm it has received an unsolicited preliminary merger proposal from Royal London on December 8th 2021. The proposal, which is on a substantively different structure to the offer received during the process in 2020, now includes the possibility of continued mutuality and is conditional on exclusive discussions. 

The outline proposal from Royal London is at an early stage and is subject to discussion, due diligence and detailed negotiation of financial and other terms. There can be no certainty that a transaction will be agreed. 

The Board will consider this proposal seriously and undertakes to update members as soon as practicable. In evaluating the Royal London proposal, the Board will continue to have regard to members and stakeholders’ best interests.

 

Your questions answered

The outcome of the votes

What does the outcome of Vote 1 mean?
What does the outcome of Vote 2 mean?
Why is the deal with Bain Capital not progressing?
What does the outcome of the 10 December SGM and Members’ Meeting mean for the future of LV=?
Does this result mean that job losses are likely?
Would you not just consider continuing as is?

The Royal London proposal

What proposal is being offered from Royal London?
Why did you not consider a potential joint Bain Capital and Royal London solution as part of the process?
If it is a Royal London solution, will this go to a vote?
Could Royal London not just acquire the entire business?
Will With-profit members become members of Royal London?

You and your policy

I voted to approve the proposals with Bain Capital, will I still get the £100 one-off member payment?
Will there be any impact to With-Profits policyholders?
What does this mean for members’ policies?
Are you still going to honour existing and future policy claims?
Will there be any change to the way my policy is looked after or change to customer service?

Board and Management

Why isn’t your CEO Mark Hartigan stepping down now?
With a Royal London solution, would any of the Board or management remain?
Has your Chair Alan Cook announced that he is stepping down?

Next steps

What are the next steps for LV=?

If you'd like to speak to us about your policy: