LV= board issues statement regarding recent press speculation regarding possible transaction
According to a recent report from
, LV= has engaged with financial advisers to examine whether the sale of its life and pensions units would be in the best interests of its 1.3 million customers. Sky
Sky reported the 177 year-old business is also considering some sort of joint of venture. Sources told Sky there is no guarantee of the sale, and LV='s board could decide to maintain its independence. However, Fenchurch Advisory Partners is understood to be advising the firm on its options.
In a statement LV= said:
"LV='s board is fully committed to maximising long term value for its members and is therefore assessing a wide range of strategic options following the disposal of the general insurance business to ensure that the remaining business continues to be operated in the best interests of all its members. Some but not all of these options may involve a transaction with a third party.
"No conclusions have yet been reached as to the most appropriate option to pursue and there can be no certainty that this review will result in any transaction being agreed or with whom."
It added: "A further announcement will be made if and when appropriate."
LV= also told COVER that its capital position is "strong", as its capital coverage ratio has increased to 244%. "This is above the top end of our risk appetite range of up to 200% and we are currently considering how best to utilise this surplus capital," it said.
The insurer added that since the outbreak of covid-19, it "very quickly" switched to home working and continue to support its IFA partners, customers and members.
It said that "business is trading well" after bringing a number of initiatives in light of covid-19, such as
premium reduction options and payment breaks for financial vulnerable customers, trialled virtual medical screenings and increased non-medical limits.
It said it has also introduced online valuations for equity release cases and launched three and four year fixed term annuities for those looking for short term security before making further financial decisions once market volatility has subsided.