Members of historic insurer LV yesterday voted down the firm’s controversial £530million takeover by a US private equity shark.
Bain Capital’s attempt to buy the 178 year-old company from the remaining 1.2 million policyholders was rejected by them in victory for The Daily Mail.
Just minutes after the results were announced, LV’s chairman Alan Cook – who had been central in trying to push the deal through – said he would step down.
Critics of the deal were also calling for the removal of chief executive Mark Hartigan – a former army colonel who kicked off the sale process just weeks after joining the insurer at the start of last year.
Mail’s victory was based on the approval of LV members to retain the firm that used to be known as Liverpool Victoria.

Members of historic insurer LV yesterday voted down the firm’s controversial £530million takeover by a US private equity shark. Bain Capital’s attempt to take over the 178-year old firm was rejected by the 1.2 million policyholders. This victory is a win for Daily Mail
The paper has fought to stop the tide of “pandemic plundering”, as many private equity firms are looking for companies that have been undervalued in the UK and trying to grab them for their profits.
A buyout of LV by a private equity firm would have been particularly distasteful, since the life insurer is a mutual – meaning it is owned by its members and can be run entirely for their benefit.
This is a result of LV’s 1843 birth in Liverpool, when the company began to sell ‘penny insurance’ to assist poor families in burying their loved ones dignified.
Private equity companies buy businesses in order to get cash. They are notorious for cutting jobs, slashing costs and hiking prices – and LV members were worried that their policies and services would suffer.
Since the pandemic, the firms have taken control of all businesses, from Morrisons to AA to G4S. Major City shareholders are now allowing the companies to take their money.
Campaigners, experts, and MPs praised Bain’s rebuttal. Kevin Hollinrake, Tory MP and expert said that this was a major victory for the Parliamentary Group on Mutuals (and the Daily Mail) who have exposed scandal after scandal.

Just minutes after the results were announced, LV’s chairman Alan Cook – who had been central in trying to push the deal through – said he would step down
This message is sent to private equity pillagers to stay away from beloved British companies.
The main reason it worked was that members got a say and not the big city institutions trying to make a killing.
Labour MP Margaret Hodge stated: ‘If it hadn’t been for a very strong campaign where the Daily Mail played a crucial role, I think people might have had the wool drawn across their eyes. And that’s scary.
Lord Heseltine, Tory great and Tory kingmaker said that members’ long-term dedication to the company had repelled short-term opportunism in the business’s dissolution.
LV has been considering whether to join discussions with Royal London, a fellow mutual. Royal London was the one that made the bid for Bain. It submitted a bid that would allow LV members to become owners of the whole enlarged company.

Critics of the deal were also calling for the removal of chief executive Mark Hartigan – a former army colonel who kicked off the sale process just weeks after joining the insurer at the start of last year
Only 12% of LV member voters voted in favor. This was not enough to remove LV from its mutual structure.
The latest loss for Cook (68), whose life has been marred by scandals.
Permanent TSB in Ireland was the chairman and he had to apologize for overcharging 1,400 homeowners.
Between 2006 and 2010, 161 wrongly accused postmasters were prosecuted by him as the Post Office’s managing director.
Until a ‘way forward’ is reached, Mr Cook will continue to be chairman of LV.
RUTH SUNDERLAND – Small savers were able to tell that they were being bought as puppies and came out in enough numbers to stop LVs plans
Ruth Sunderland is the Daily Mail’s editor
Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm.
Despite the victory of ordinary customers over powerful private equity forces, it is still a reason to enjoy the holiday season a bit early.
Now, it seems likely that one the country’s most beloved mutual insurances will keep that status instead of being sold to private equity bullies for the pleasure of their self-serving bosses.
While many families and businesses struggled to survive the financial crisis, private equity has enjoyed a period of great success.
Wm Morrison supermarket has been one of the many companies that have fallen to the hands buyout barons.
The predators have swooped on some of the UK’s most important businesses virtually unhindered – until now.

Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm
Big City shareholders almost never put up much resistance. They will take quick cash from any sale and not consider the impact on customers, employees or the overall economy.
And bosses of target companies are often all too eager to sell out to private equity as it means they will be in line for large personal gains – as was the case at LV.
It is encouraging to see small savers standing up for common values.
LV’s leaders treated policyholders in total contempt throughout the entire sale process.
Their hopes of the deal going through were based on passive acceptance or apathy on the part of what they believed to be sheeplike savers.
They could not have bargained on the intelligence of their members, who, despite the low turnout, showed enough strength to stop their plans.
The LV policyholders who voted against Bain may not be financial experts – but they can tell when they are being patronised and sold a pup.
Chairman Alan Cook and Chief Executive Mark Hartigan were atrocious from the beginning of the failed sale until the end.
It was difficult to locate important information in documents or long documents, so it was either withheld or reluctantly disclosed.
Two key principles of mutual understanding, transparency and respect were severely lacking.
This mentality was maintained until the very last breath.
Even the media was barred from yesterday’s final online meeting. The media were not allowed to attend the final online meeting yesterday, despite clear public interest. It is a common practice for companies that reporters are admitted on these occasions.
Hartigan and Cook did not convincingly explain why they declined a proposal from a mutual Royal London member, as many of their members preferred.
Both mutuals are currently discussing a new offer.
Although this seems like a good development, mutuality does not guarantee anyone a pass. This newspaper will keep an eye on Royal London to ensure that the new offer is in line with the best interests of LV-savers.
This victory is for political campaigners, politicians, and more importantly, for the LV-savers who voted no to the deal.
Messrs. Hartigan & Messrs. Cook, you should listen to It’s a Wonderful Life again over Christmas.
Perhaps they will be inspired by its spirit if they see it enough.