The head of the well-known insurance company defended his possible sale to a private US investment firm under criticism from politicians and some of his members.
Mark Hartigan, CEO of LV=, said the acquisition by Bain Capital was the “best financial result” for its members. The £530m deal resulted in the loss of joint company status.
LV = according to its current structure, belongs to its 1.2 million-member subscribers.
Its members are asked to vote on the deal by December 10. Suppose 75% of voters support the takeover. In that case, a new vote will follow whether the business will be transferred. Entirely to Bain Capital or whether the US company can do business under the LV= brand.
However, multi-party politicians and some LV= members have voiced concerns about the sale of the company to a US private investment firm. And the size of member payouts if the deal closes.
The company started as an independent Victorian funeral home in Liverpool in 1843. The first agents collected penny gifts on their doorstep, often flowing into policies that covered funeral expenses.
Mr. Hartigan came to what is now known as LV = last year to review the business and help determine its future. The deal with Bain was first announced in December last year when LV=12 received an official offer. Mr. Hartigan defended the deal, saying Bain Capital was “the only company willing to invest in our growth.”
“This means that we will retain the jobs we have and the locations where we operate. As well as future services to the communities that LV serves,” he said.
However, he did not confirm whether Bain Capital had assured insurance. And pension funds that all of its employees would be detained. Analysis by Dharshini David, business presenter. Financial robbers intend to hoard debts and confiscate assets? Or those with deep enough pockets and insights to protect the future of traditional brands?
As British companies emerged from the pandemic. Private capital began to buy but the sale of LV = reignited the debate about their role and intentions. The government is trying to attract investment into the UK, and private capital – total funds – can take many forms. Including our pensions and other mutual funds.