Leading UK life and pensions mutual insurer LV= is joining the Association of Financial Mutuals (AFM), 15 months after members rejected moves to sell and demutualise the business.
The board of AFM – the trade body that represents mutual and not-for-profit insurers, friendly societies and other financial mutuals across the UK – voted unanimously at its most recent meeting that LV= should become its 45th member.
This news comes a month after LV+ CEO David Hynam stated the insurer’s commitment to mutualism. Hynam took the helm of the 180-year-old insurer – an icon of the UK mutual movement – in September 2022, following the failed bid by his predecessor Mark Hartigan to sell the business to US private equity firm Bain Capital.
Of the decision to join AFM, Hynam said: “Mutual organisations play an essential part in delivering financial confidence across all parts of society, striving to deliver the best financial outcomes for members. Mutuals provide diversity of choice and make our life and pensions market more resilient.
“It is essential that mutuals compete on a level playing field and that policymakers understand the necessity to update the rules and regulations that govern the sector so mutuals can thrive.
“As LV= approaches its 180th year, I am delighted that we are adding our voice to the fantastic work the AFM and its members are already doing.”
Stuart Tragheim, chair of AFM and CEO of Holloway Friendly, said: “The AFM board was delighted to welcome LV= to the AFM and approve its application.
“LV= and AFM have been in dialogue for a number of months and the AFM Board has been impressed by the LV= leadership’s commitment to maintaining strong mutual credentials.
“They are also enthusiastic about engaging with the rest of the mutual sector, and their commitment will make a real contribution to our work making the case for mutuality and promoting corporate diversity in the best interests of mutual members across the UK.”