LV members will have to wait almost a year to get the £100 they have been promised if the mutual insurer’s controversial sale goes ahead.
Bain Capital, a private equity firm, offered $1 million to LV’s 1.2million owners to convince them to sell.
But even if they vote for the deal, they will not get the £100 until next October at the earliest.
LV members will have to wait almost a year to get the £100 they have been promised if the mutual insurer’s controversial sale goes ahead
The delayed date of the payment – branded a ‘bribe’ by members – is buried deep in a 53-page document customers were sent last month.
The deal is open for voting until Friday
Bain is expected to raise policies prices and reduce jobs, before selling the company on again. Members worry. Daily Mail has been protesting the takeover.
However, LV chiefs claim that the deal provides ‘excellent financial outcomes for members’ and ‘unrivalled support for LV’, its people, and UK-based areas’.
Clarissa Johnson (retired lecturer at LV) said that she didn’t believe many people would have realized the payment wouldn’t arrive until next year.
LV’s decision to make that statement prominently does not reflect the members being fully informed. It hasn’t been widely distributed.
“Things that you may really need to know about this proposed deal are hidden. My opinion is that LV has not been treating its members as fairly as it should.
“I am very worried that people may think it is a Christmas windfall, and they’ll be greatly disappointed.”
Gareth Thomas is a Labour MP and chair of the all-party Parliamentary Group on Mutuals. He said that LV members might be mistaken for believing they would get a large bonus just before Christmas after hearing from Bain, the LV bosses.
“But, in reality, they won’t get any money for very long. This is another reason no independent expert would recommend this deal.