View more on these topics

LV= pours cold water on merger plans

Business-Handshake-General-Hire-Appointment-700x450.jpg

LV= has poured cold water on reports than it is seeking a merger with another provider.

Reports suggested last month that LV= had held talks with Royal London about a potential deal, but talks ended when the pair could not agree terms.

It was also suggested the LV=’s general insurance business had received a number of approaches from other insurers regarding a potential acquisition.

Speaking to Money Marketing after the release of LV=’s annual results this morning, managing director of protection Myles Rix said that the provider could not comment on past talks, but was not currently in merger discussions.

He added: “I don’t think we need to acquire assets in order to reach scale. We have a profitable business at the scale we are at. There’s not a need for us to consolidate more.”

“I don’t think we need to dash for growth in order to achieve scale.”

While LV= completed its acquisition of insurer Teachers Provident Society in June last year, Rix described this as a “relatively small transaction” for the group.

While LV=’s life and pensions arm increased its profits from £41m to £45m, the group as a whole reported a pre-tax loss of £49m in 2016.

Rix said that while the life and pensions business was growing, changes to discount rate rules had resulted in around a £100m reduction in overall profits.

Recommended

LV= eyes merger deal as talks falter

LV= has reportedly held talks to secure a merger with another provider amid a backdrop of tougher capital requirements. Sky News reports LV= has held talks in recent months with Royal London about a potential deal, though merger talks are said to have broken down following a disagreement over the structure of a deal. LV= […]

Spotlight on charges 700x450.jpg
1

LV= scraps exit charges across pensions offering

LV= has removed all exit charges on its pension wrappers. The provider becomes the latest to take action on exit fees after pledging to remove them by the end of 2016 in July. Both Prudential and Scottish Widows scrapped exit penalties for their workplace pension customers in March, while Aviva introduced a 5 per cent cap […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment