UK-based mutual insurance firm Liverpool Victoria Financial Services (LV=) and Royal London have confirmed that they are holding talks over a potential combination of their businesses.
The news comes after LV= abandoned takeover talks with US private equity firm Bain Capital following the member’s vote.
At the time, Royal London, a former bidder of the mutual insurer, also made an offer to enter talks with LV= for a mutual merger.
Announcing the move, LV= interim chair Seamus Creedon said: “We share a common interest with Royal London in a healthy and vibrant mutual sector so that we can both compete fairly with shareholder-owned firms.
“We have had, and continue to have, discussions with Royal London about if and how we can co-operate to the benefit of both sets of members and the mutual sector.
“In the meantime, we will continue to strengthen our independent business for the benefit of our existing and future policyholders.”
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By GlobalDataNotably, there is no surety of a deal materialising, and the firms plan to make an announcement ‘as and when appropriate’.
Royal London said: “We note LV=’s announcement and we can confirm we have had initial, exploratory discussions with them.”
The $701m Bain Capital deal would have demutualised LV=, with each member receiving £100 as compensation.
LV=’s members did not support the deal, citing that they were not being offered adequate compensation.
