LV= has announced that it has reached an agreement on the terms of a transaction with funds advised by Bain Capital Credit to acquire the insurance firm.
The private investment firm will pay £530m to acquire LV=’s savings and retirement and protection businesses, representing a multiple of 0.9x for the solvency II own funds of £606m as at September 2020.
This acquisition is set to be completed by the end of 2021, but is subject to regulatory approval.
Mark Hartigan, CEO of LV=, said: “The partnership with Bain Capital recognises the opportunity to further invest to develop LV= at a time when it is well positioned, growing market share, expanding its products and trading resiliently, despite the pandemic. While our corporate structure will change, our culture and values remain the same.”
“The board is excited by the opportunities it creates for our people, partners and customers – enabling the LV= brand and business to further develop as a major force in the UK life insurance market.”
Matt Popoli, global head of Insurance at Bain Capital Credit, said: “We are delighted by the opportunity to provide long-term support to LV=’s Board of directors and management team on this transaction, which delivers certainty and value to LV=’s members.
“We are investing in a unique company with an impressive management team and employee base, that is already well positioned in the market, with a clearly established product set, strong IFA relationships and a reputation for customer excellence.”
He added: “We have been impressed by LV=’s initiatives to further improve its market position, the benefits of which are already emerging.”