It’s one of the biggest names in UK insurance – but it seems that tough times with low interest rates and stringent capital requirements have taken their toll on LV=.
The mutual insurer is reportedly hunting for a merger partner – with talks allegedly having being held with Royal London about a potential hook-up. However, it is said that those reported talks came to an end over the structure of a potential deal.
Sky News has broken the story that LV= has received several enquiries from insurance firms with regards to a possible acquisition of its general insurance division, with the company reportedly looking into the possibility of individual unit sales.
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The largest friendly society in the country, which employs more than 6,000 people and has 1.1 million members, operates across both general and life insurance, and is the third largest car insurance provider in the UK – however, it has been hit by regulatory reform, particularly relating to Solvency II with LV= operating under a standard formula. The company has been further hit by changes to the personal injury discount rate.
Sky News sources claim that LV= is not certain about whether it will offload its general insurance arm – but that an auction may be attractive in the future.
The mutual will announce its full year results on April 12.
We will bring you more on this story as it breaks.
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