Insurance battle

Royal London proposes full merger with LV=

Barry O'Dwyer

`Barry O’Dwyer is attempting to gatecrash LV= deal

Royal London is expected to ramp up its interest in rival insurer LV= by proposing a merger with the business.

It has already had two proposals rejected by the board of LV= which is under fire from members over a meagre £100 payout that will result from its preferred takeover by Bain Capital.

LV= will this week urge members to back the offer from Bain by promising further benefits in future years, according to a weekend report.

The insurer has just three weeks before policyholders vote on the transaction.

Barry O’Dwyer, chief executive of Royal London, still believes he can scupper the tie-up with the US private equity firm.

He is understood to be preparing a merger deal that will be put to LV’s board if its members vote against Bain’s £530 million offer on 10 December.

The Mail on Sunday reports that the new plan for a merger would allow LV= members to keep their mutual status as part of Royal London. 

If the two mutuals were to combine, Royal London could then look to sell the historic LV brand. 

It is already licensed to German financial firm Allianz, which bought LV’s general insurance business for £1billion last year. 

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