MPs are preparing to investigate private equity firm Bain Capital’s potential £530m takeover bid of insurance mutual LV=.
There is growing concern that both policyholders and members will “lose out” on the deal as both groups have yet to receive full details of the potential sale.
A deal between LV= and Bain Capital would need approval from 75% of the insurer’s members, however LV= wants to override a rule under which at least half of all members must approve demutualisation.
The media was banned from attending a meeting between 220 of the group’s 1.1 million members last week.
The All-Party Parliamentary Group for Mutuals is looking to speak to LV= chairman, Alan Cook, and chief executive, Mark Hartigan, to give evidence, as well as mutual sector experts and financial analysts.
The deadline for submission to the investigation is 5 March, with oral evidence sessions being held over the following two months.
Graham Thomas MP, the group’s chair, said: “As chair of the APPG for Mutuals I’m keen to understand why LV= have chosen to sell up to a U.S. private equity firm when its own with-profits committee previously had preferred a bid from fellow mutual Royal London.”