We missed this one from the 10th December, but it’s worth looking at now. After the Christmas break IE expects a resolution to this thorny question of mutuality at LV’s Life policy book. Either the members get something more in cash, right now, from the Bain deal, like say £500-£800 each, or something else needs to be wortked out with RL that maintains mutual, with-profits policies for those who want that long term investment vehicle.
There is a place for the mutual membership, Life cover with profits product within the insurance market. As boring as it seems to many in the VC world, this is exactly what people on lower incomes need in terms of Life cover, with a nice little lump sum at the end of the term. In 2022 it would be great to see insurtech solutions being applied to market this type of product to a new audience, who value genuinely sustainable long term investment, in high wage, locally based companies. The circular economy can be an integral part of the mutual movement, it just needs to be packaged and sold properly.
Here’s the word from Royal London;
In light of the outcome of LV=’s Special General Meeting, Royal London can confirm that it has offered to enter into immediate and exclusive discussions with LV= to agree a mutual merger that will offer LV= customers the opportunity to have their life savings protected and invested by a mutual. We envisage that the terms of the merger would offer LV= members the option to become members of Royal London. This proposal has been made on a different basis to the previous offer made in 2020.
If the merger goes ahead, the bringing together of the best of both companies will result in a growing, well-capitalised, modern mutual. It will provide UK consumers with a great customer-owned alternative to the rest of the insurance and long-term savings market, which is almost universally shareholder-owned. We are confident that there will be exciting opportunities for colleagues within both Royal London and LV= as part of a larger, well-capitalised and growing mutual.
We hope to agree a proposal that Royal London can recommend to our members. If we proceed, we will consult widely and provide clear information to members of both organisations about what this merger might mean for them. In the meantime, it is important to note that these discussions have no impact on our day-to-day business. Customers don’t need to take any action at this stage and they will continue to receive the same high standard of customer service that they expect. There is no certainty that these discussions will result in a transaction and a further announcement will be made as and when appropriate.
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