Royal London and LV= merger discussions have now ceased, according to statements from both companies.
Royal London previously said that as part of a growing and well-capitalised mutual, it believed it could offer LV= members an “attractive future”. But talks have now ended with LV= saying that the two companies’ mutual models were incompatible.
Royal London group chief executive Barry O’Dwyer says: “Mutuals are owned by their customers and are run for their benefit.
“Our offer to preserve LV=‘s mutuality through a merger with Royal London was based on an understanding that LV= did not have a viable future as an independent company.
“For Royal London’s customers and members, nothing changes. We remain committed to delivering great value products, backed up by market-leading customer service. We look forward to sharing a substantial level of profits with our eligible customers in April, as we normally do.”
According to LV=, merger talks began at the beginning of the year, but it quickly became clear that the two mutual models were incompatible, and that a merger would not be in the best interests of LV= members.
LV= interim chair Seamus Creedon says: “We thank Royal London for its engagement and we look forward to operating alongside it as part of a vibrant mutual sector. The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the Board’s belief in, and commitment to, the continuation of our status as an independent mutual.
“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand. We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities. We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”
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