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Royal London to resurrect bid if LV= sale collapses?

‘Case for demutualising is very weak’ when there is an ‘alternative, equivalent option’ to retain status

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Royal London is reportedly considering reviving its offer to acquire rival mutual insurer LV=.

According to British newspaper The Times, senior management at the firm have been monitoring the controversial deal and believe that members might want to preserve LV=’s mutual status.

The vote is due on 10 December 2021.

If they decide against the M&A deal with private equity firm Bain Capital, Royal London is believed to put forward its own offer.

The move follows the Financial Conduct Authority’s approval for LV= members to have a say on the takeover, after it came under fire from both members of parliament and the All-Party Parliamentary Group for Mutuals.

The acquisition was first announced in December 2020 for £530m ($730m, €627m).

A spokesperson for Royal London told International Adviser: “Royal London is passionate about the benefits of mutuality. We believe that a mutual structure is the best corporate model for long-term insurance business that provides pooling of risks over time whilst ensuring fairness between generations.

“We think the case for demutualising is very weak if there is an alternative, equivalent option to allow a mutual to retain its status.

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