Global private investment firm Bain Capital has agreed to buy Liverpool Victoria Financial Services (LV=).
This comes several months after the savings, retirement and protection group confirmed talks between the two parties.
The acquisition is subject to regulatory approval and approval from LV= members, and it is expected to complete by the end of 2021.
The deal will be carried out in two stages with Bain Capital initially acquiring LV=’s subsidiary LVLC together with the administration and new business infrastructure.
All eligible members will be invited to vote on the transaction at a meeting which is expected to be scheduled for the first half of 2021.
‘Strong IFA relationships’
Mark Hartigan, chief executive of LV= 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 at Bain Capital Credit, added: “We are investing in a unique company with an impressive management team and employee base, that is already well positioned in the market, with a clearly established product set, strong IFA relationships and a reputation for customer excellence.
“We look forward to working collaboratively to achieve these shared goals, which include delivering profitable growth, while preserving LV=’s strong financial position, independence and rich heritage dating back to 1843.”
As a result of the transaction, all LV= members are expected to benefit from a cash payment to compensate for loss of mutual membership upon full completion of the deal.
Customers will also benefit from the increased investment that Bain Capital will provide.
The partnership with Bain Capital will provide LV= with the external investment “needed to grow its leading brand and strong product set for the continued benefit of customers and IFAs”, LV= said.
“LV= is a long-term investment for Bain Capital.”