Liverpool Victoria Sale/Demutualisation.

longleggedhair

I see from news reports that further to their change of structure, LV are in receipt of a number of offers from interested parties. I’m a member via life insurance but not a with-profits customer. What do you guys think of the likelihood of members getting a payout?

dunstonh

What do you guys think of the likelihood of members getting a payout?

pretty much zero.

longleggedhair

dunstonh said:

What do you guys think of the likelihood of members getting a payout?

pretty much zero.

Why so? The bids are from other private companies so one would imagine it would be a Demutualisation route?

WilfHilton

I understand that a vote is required with 75% in favour.  I expect the offer to be on the table before the vote.   This I believe will incorporate a "pay off" for with profits funds.   I would like yo understand:
1) what is a good offer for pay off?
2) what is a good offer for with profit bonuses and market reductions if you wish to sell before or after demutualisation?
I will keep looking on facebook and other forums etc.  Has anyone any ideas or location of resources now discussing this?
(Pay off or pay out?)

couriervanman

longleggedhair said:

I see from news reports that further to their change of structure, LV are in receipt of a number of offers from interested parties. I’m a member via life insurance but not a with-profits customer. What do you guys think of the likelihood of members getting a payout?

Life insurance customers.....Zilch/Nada/nothing
With Profits.....almost Zilch.......10/15 years ago would have seen a decent payment

dunstonh

To be fair, things have moved on a bit since this thread started.   Earlier in the year, it was thought only around 250,000-300,000 LV members would be in line for a windfall (i.e. just the With Profit fund investors).    There are now suggestions it will include 1.3 million members.  So, that would include the life assurance members.    It looks like it is following the Friends Prov model which paid a base amount to all members and an enhanced amount to with-profits members.
LV has already sold its general insurance business to Allianz and the sale of the investment and pensions book is raising just £530m.  Even if members got every penny of that £530m, that is just £407.  They won't get every penny due to costs etc.  So, you are looking at a figure quite a bit less than that.

veryintrigued

Looks to be superb news that those with 'with profits policies' will receive both a windfall and an uplift at maturity.

Can any of you remember if similar sales resulted in those children holding With Profit policies under 18 receiving both elements?

planteria

a reasonable summary of the tale so far..
https://news.sky.com/story/cash-pay-out-for-1-3-million-members-as-lv-ends-mutual-status-12162705
i wonder what the 40% uplift will actually mean in practice..
will i be able to cash my Bond in whenever i want to, with the maturity value increased by 40%?
will i be able to cash my Bond in on any anniversary, with the maturity value increased by 40%?
if i want to merge my LV pension pot with a policy with NFUM/RLon/Wesleyan, will the transfer value be increased by 40%?

Old_Lifer

I know nothing of this except what I have read in the above posts but the following thoughts come to mind:

1)   If a 75% yes vote is required,  anyone with a vote will presumably be offered a payment which  I assume will mean there is less for the with-profits policyholders.

2)   Is it 40%   or is it  'up to 40%'  (with the amount depending on how long the policy has been in force)  ?

planteria

Old_Lifer said: 2)   Is it 40%   or is it  'up to 40%'  (with the amount depending on how long the policy has been in force)?

good question. i think the answer is 'yet to be determined'.. i'm planning to steadily add to my pension during the year and we shall see how it pans out.

blueplanet2020

Any idea on how much the likely payout will be if it is approved?  Thanks