LV= Hunts For Merger Partner
One of the UK’s leading insurance companies is reportedly holding talks with potential merger partners.
A Sky News report this week claimed that mutual insurer LV= has been holding talks with Royal London about a potential merger deal.
LV= has allegedly received several enquiries from insurance firms with regards to a possible acquisition of its general insurance division. The company is reportedly looking into the possibility of individual unit sales.
Employing more than 6,000 people, LV= has 1.1 million members and is the third largest car insurance producer in the UK.
LV= has declined to comment on the alleged talks.
An LV= spokesperson said: “We do not comment on rumour and market speculation.”
Low interest rates and severe regulatory reforms have created a tough economic environment for insurers. LV= was hit by reforms relating to Solvency II, operating under a standard formula. The insurer has also been affected by the recently announced changes to the person injury discount rate.
In January, it was announced that LV= chairman Mark Austen was to step down after serving four years in the role and a decade on the company board.
LV= is expected to announce its full year results on 12th April 2017.