Very good question. Lots of Liverpool Victoria policyholders were hoping that fellow mutual Royal London would acquire the business, thus maintaining the traditional mutual with-profits policy model. But that utopian dream seems more unlikely today after this announcement from LV=, who have formally ceased discussions. Fact is, many insurers cannot see the cross-selling, or added value product revenue potential in the `fit & forget’ Life policy market. It’s more exciting to offer app-based products that are funded by monthly subscription like a phone contract. Just saying.
Here’s the statement from LV=
LV= entered into merger discussions with Royal London at the start of the year. However, it has become clear to LV= that our different mutual models mean such a merger would not be in the best interests of LV= members. As a result, talks between the two companies have now ceased.
Seamus Creedon, LV= incoming chair commented; “We thank Royal London for its engagement and we look forward to operating alongside it as part of a vibrant mutual sector. The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the Board’s belief in, and commitment to, the continuation of our status as an independent mutual.
“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand. We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities. We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”
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