Life insurance giant LV= has said it has agreed to be sold to private equity firm Bain Capital for £530 million.
LV=, which was previously called Liverpool Victoria, had been in exclusive talks with the investor over a potential deal for the past two months.
On Tuesday, the insurer said it had agreed the deal, which it expects to complete by the end of 2021.
The sale is set to lead a cash payout for LV=’s 1.3 million members, many of whom will also be eligible for higher bonuses when their current policies mature.
We’ve reached an agreement with Bain Capital to acquire our life and pensions business. The partnership will provide us with the external investment to grow LV= for the continued benefit of our customers. For more visit https://t.co/q9D0eEMYsupic.twitter.com/5VuDQM6Oq4
— LV= (@lv) December 15, 2020
It also comes after a lengthy strategic review at the insurer which saw it sell its car and home insurance business to Germany’s Allianz last year.
LV= chief executive Mark Hartigan said: “The partnership with Bain Capital recognises the opportunity to further invest to develop LV= at a time when it is well positioned, growing market share, expanding its products and trading resiliently, despite the pandemic.
“While our corporate structure will change, our culture and values remain the same.
“The board is excited by the opportunities it creates for our people, partners and customers – enabling the LV= brand and business to further develop as a major force in the UK life insurance market.”
Matt Popoli, global head of insurance, Bain Capital Credit, said: “We have been impressed by LV=’s initiatives to further improve its market position, the benefits of which are already emerging.
“Our principles and values are in direct alignment with those of LV= and we firmly believe in a shared vision for the future of the business.”