Merger talks between mutual insurers LV= and Royal London over a potential merger have ended with both sides walking away.
Merger discussions started shortly after an attempted takeover of LV= by private equity firm Bain Capital in December failed to win support from its 1.2 million members.
Royal London suggested the need for LV= to merge in order to survive was overplayed and LV= said the different business models made a deal impossible.
LV= also stressed that it was now focused on a standalone future.
LV= interim chair Seamus Creedon said: “We thank Royal London for its engagement and we look forward to operating alongside it as part of a vibrant mutual sector.
“The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the board’s belief in, and commitment to, the continuation of our status as an independent mutual.
“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand.
“We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities.”
Royal London chief executive Barry O’Dwyer, added: “Our offer to preserve LV=’s mutuality through a merger with Royal London was based on an understanding that LV= did not have a viable future as an independent company.”
“For Royal London’s customers and members, nothing changes.
“We remain committed to delivering great value products, backed up by market-leading customer service. We look forward to sharing a substantial level of profits with our eligible customers in April, as we normally do.”
