The All-Party Parliamentary Group (APPG) for Mutuals is today [8th February] announcing an inquiry into LV=’s recent decision to sell to Bain Capital.
LV=, one of Britain’s biggest financial mutuals, founded in 1843 and trading for most of its life as Liverpool Victoria, is well known across the UK.
The inquiry will consider whether LV=’s proposals are good for policy holders, for competition and for the business. LV= has itself described the deal with Bain as “an excellent financial outcome for all of our members.”
Launching the inquiry, Gareth Thomas, MP for Harrow West and Chair of the APPG said:
“Members of the parliamentary group are concerned at what impact the sale will have on LV= members, the insurance industry and competition and choice in financial services. We are also interested in whether the LV= decision reflects weaknesses in the Government and regulators’ views and support of mutuals.”
The APPG will seek evidence from mutual sector experts, financial analysts and from LV= itself. The Group is keen to hear from other individuals and organisations and with an interest in this Inquiry. The deadline for the submission of written evidence is Friday 5th March and the APPG plans to hold a number of oral evidence sessions in the first quarter of 2021, before publishing its inquiry report. Evidence can be submitted to the APPG Secretariat at appg@mutuo.coop
Inquiry Terms of Reference
The APPG will consider, and is keen to understand:
- The context of why at this time the status quo is not good enough, given LV=’s brand strength, capital and momentum.
- The impact that the sale will have on LV=’s members, the insurance industry & the implications for competition & choice in financial services more widely.
- The rationale that supported the decision by the Board of LV= to sell the business to Bain Capital, and whether other options were considered fully.
- The motivation behind LV=’s recent conversion from a friendly society to a mutual company, including how this is connected to the proposed demutualisation.
- The wider legislative framework for Friendly Societies and Mutual Insurers, with a particular focus on barriers to raising capital, protection from demutualisation and attitude of Government and regulators.