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LV= Confirms In Talks Following Report Of Takeover By Royal London

Mon, 28th Sep 2020 07:21

(Alliance News) - Liverpool Victoria Financial Services Ltd confirmed early Monday it is in talks with "a number of parties" for a potential transaction.

The statement by the insurer, which trades at LV=, was made in response to a Sky News report on Saturday that Royal London Mutual Insurance Society Ltd could be days away from sealing a GBP500 million takeover of its smaller peer.

Sky News said the two firms are in detailed talks over a potential deal that would create an entity with nearly 10 million customers in the UK.

Quoting sources close to LV=, Sky News reported that LV='s valuation is over GBP500 million, but some way off the GBP1 billion mark.

Talks between the duo are not yet exclusive, and Sky News added that private equity firm Bain Capital also mulling buying LV=.

Royal London has assets under management of GBP139.0 billion as of June 30, with LV= managing assets worth GBP14 billion, according to Sky.

LV= has been a much smaller business since selling the remaining 30% stake in LV= General Insurance to Allianz SE back in May 2019.


LV= said Monday the discussions are part of its previously announced strategic review. It said the talks are on-going but there can be no certainty of a deal being done.

It said it continues to trade well, adapting to Covid-19, and has a capital coverage ratio in excess of 200%.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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