Mark Hartigan is to step down as interim CEO of LV= and a member of the mutual’s board.
The society confirmed this morning that the process to recruit Hartigan’s successor is already underway and is being led by chairman Simon Moore and search firm Russell Reynolds Associates. Hartigan will stay on as interim CEO until his successor is appointed.
Hartigan was appointed as interim CEO in 2019 to improve the commercial performance and fundamentals of the business and to complete a strategic review as instructed by the board which led to the £530m proposed deal with Bain Capital.
But shareholders failed to back the deal in December at a special general meeting with just 69% of LV= members who voted in favour of the proposed deal.
Commenting on Hartigan’s impending exit, chairman Simon Moore said: “Mark has led a successful turnaround of the business, in our recent 2021 financial results we announced that we outperformed both in terms of our new business volumes and that there has been significant growth in sales and trading profit,” he said.
“He has built a strong executive team with a culture that places members at the core of the brand. Under his leadership the company is now trading profitably and has won significant market share.
“Under Mark’s leadership, LV= has strategically refocused away from mass market offerings to targeted and under-served markets such as helping families to build financial resilience with income and critical illness protection.”
“This has proven to be a successful strategy and LV= will be developing these opportunities further and has plans to extend its reach to achieve greater customer access.
Moore added that with LV= “looking forward to the future with confidence”, the board and Hartigan agreed the time was right to appoint a permanent chief executive “to build on this platform and further develop a sustainable mutual future for LV=.”
“On behalf of my fellow board members I would like to thank Mark for everything he has done during his time as LV= chief executive,” he continued.
Hartigan noted that despite challenging trading conditions the insurer was now well capitalised and clear in its future plans.
“With a strong leadership team in place and a clear plan for the future it is the appropriate time for me to step aside as interim chief executive,” he said.
“I express my gratitude to the board of LV= who charged me with very specific and fundamental tasks when I was appointed. I particularly want to thank the employees of LV= who have been absolutely key to putting this hugely important business back on a much firmer footing.”