Boss of mutual life insurer LV= quits after £530m sell-off bid

THE boss of the mutual life insurer LV= is to step down after a botched £530m attempt to sell the business.

Mark Hartigan will stay on as interim chief executive until a successor is appointed. His departure comes seven months after LV’S 1.2m members voted against its proposed sale to US private equity business Bain Capital.

Alan Cook, the LV chairman, resigned shortly after the deal fell through.

Simon Moore, who has since replaced Mr Cook as chairman, said Mr Hartigan has led a successful turnaround of the business in spite of the failed deal.

He added: “With LV now looking forward to the future with confidence, the board and Mark have agreed that the time is right to appoint a permanent chief executive to build on this platform and further develop a sustainable mutual future.”

The group has kicked off the search for a new boss with help from headhunters Russell Reynolds Associates.

Mr Hartigan said: “With a strong leadership team in place and a clear plan for the future it is the appropriate time for me to step aside.”

The takeover saga thrust LV into the limelight last year, with politicians wading into the debate amid concerns over LV’S future in the hands of a private equity firm, payouts being offered to members and motives behind the sale.

Members would have handed over ownership of the group in return for £100 each, while with-profits members would have been given an additional payment when their policies matured.

It also emerged that rival Royal London had offered a higher £540m to merge with LV before the board backed the Bain deal. Royal London then rekindled talks over a possible merger after the Bain vote, but this too fell through.