One of the largest financial services mutuals in the UK has held secret talks over a potential merger with Royal London.
LV=, which has nearly 6m UK customers across insurance, pensions and income protection products, has now called off the talks as the firms couldn’t agree on the structure of a deal, reported Mark Kleinman, city editor of Sky News.
The UK’s third-largest car insurer’s profit has been hit with a combination of tougher capital requirements and low interest rates. LV= is also understood to have been exploring whether to sell any of its individual units.
The firm’s profitable insurance division has been the subject of a number of acquisition enquiries from other insurers. However, it wasn’t clear whether any discussions were ongoing. Industry sources said they were likely to be continuing.
Formerly known as Liverpool Victoria, LV= employs more than 6,000 people and is the biggest friendly society in the country, counting 1.1m of its customers as members.
The mutual operates across the life and general insurance sectors, and it’s the UK’s biggest provider of individual income protection.
Read more: Insurer LV= steps into the legal market