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Discussions are said to be at an early stage – but given that the friendly society boasts close to six million customers in the UK, the figures being touted are high. Potentially they could place a value on the general insurance arm of LV=’s business well in excess of £1 billion. It has also been reported that there may be a reinsurance deal for LV=’s balance sheet on the table.
According to insiders, LV= has been approached by several parties over a possible deal – including wealth funds and pension funds. It was also reported that a possible mega merger with Royal London had been aborted.
A report at heart.co.uk noted that the mutual is currently the third largest car insurance provider in the UK and has set its sights on becoming a “challenger brand”. However, amid a host of regulatory reform, the Ogden rate decision and more, mutuals are widely seen as being at a disadvantage because they are not able to issue new shares in order to gain capital.
To this point, Allianz and LV= have both rejected to comment on the potential deal. We’ll bring you more on the story as it becomes available.
Article is care of wwwbusinessmag.com and the original article can be found here.
