The Royal London cup
(Picture: PA)LV= has ended takeover talks with Royal London, just days after the pair said negotiations were ongoing.
Both the mutual insurers confirmed talks had ended. Discussions about a possible combination began in December after LV=’s proposed sale to Bain Capital collapsed.
Talks were reaffirmed on Monday and it is not clear what has changed in the intervening period. A spokesperson for Royal London declined to comment.
The failure of the Bain deal led to concerns about LV=’s future but interim chair Seamus Creedon said today: “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.”
Royal London initially bid against Bain for LV= but the offer was rejected because management wanted to safeguard the LV= brand. Concerns about the continuation of the LV= brand appear to have played a part in talks this time around.
Creedon said: “We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand.
“We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”
Royal London CEO Barry O’Dwyer said: “For Royal London’s customers and members, nothing changes.”
LV=, originally Liverpool Victoria, has 1.25 million mutual members, though just a fraction of those have ownership rights that carry a profit share. Royal London has around 1.2 million mutual members.
