LV= slaps down paltry Bain deal payday speculation

Insurer LV= has slapped down reports of paltry pay outs to members from the proposed tie up with US private equity giant Bain.

The City insurer, founded in 1843, has characterised reports that members will receive £100 from the deal with Bain as a wholly “misleading comparison”.

Instead, with-profit members will receive the majority of the payouts from the deal, “with non-profit members receiving a fixed payment upfront,” LV= said.

The £100 distribution has been criticised for being too low for losing the insurer’s mutual status.

Under a “business as usual” no-deal scenario, £404m would be shared with its 271,000 members whose policies entitle them to a share in its profits, compared with £616m under the Bain deal.

LV=’s leadership team urged members to vote for the Bain acquisition.

Alan Cook, Chairman of LV=, said: “There have been numerous theories and opinions about the process and decision. So that members can vote with the facts in front of them, we are showing the analysis we did and the conclusions we reached.” 

“We urge members to vote at the meetings on 10 December and vote in favour of the transaction with Bain Capital to protect both their interests and the future of LV=.” 

LV= shared in depth calculations explaining why its board was pushing the Bain deal in a bid to convince members to approve the deal.