Royal London has hit back at LV= claiming the insurer can retain its mutual status if it engages in takeover talks with the fellow mutual.
The spat between the insurers has intensified today as Royal London released its statement in response to one from LV=’s board earlier in the day.
In it’s earlier statement, LV= claimed an email sent by Royal London and reported on the weekend had proposed the dismantling of LV= rather than the preservation of its mutual status and accused Royal London of “seeking to destabilise” its proposed £530m sale to Bain Capital.
The Bain Capital deal would end LV=’s mutual status while Royal London had also been in the bidding for LV=.
The Mail on Sunday reported that Royal London’s email had made a proposal to LV= that the insurer would be split with Bain should the sale be rejected by members.
‘Do not want to break up LV=’
Responding to LV=’s claims, Royal London said it has “long wished” to find a way to combine the UK’s two biggest insurance mutuals, in order to deliver the best long-term value for their respective members.
“We do not want to break up LV and would be delighted if the LV board would engage in discussions,” the insurer said.
“Our recent email to LV recognised that they have signed a contract with Bain Capital which we believe would preclude them from having bilateral discussions with Royal London and so we proposed a three-way conversation between Royal London, LV and Bain Capital.”
Royal London further argued that staying mutual was an option should LV make this a priority and engaged in talks with it.
Barry O’Dwyer, group chief executive of Royal London, (pictured) added: “LV members have an important choice to make.
“I call on the LV board to engage with us to explore how LV customers can continue to have their life savings protected and invested by a mutual.”
Last month, the Financial Conduct Authority granted permission for the mutual to proceed with the membership vote at a special general meeting on 10 December and court hearing related to the proposed sale.
The deal must be approved by 75% of members who vote to be passed.