As pressure mounts on the LV sharks, Business Secretary asks for candor from insurer bosses.

  • Kwasi Kwarteng is the first minister of government to call on LV bosses for honesty over this deal
  • Backed call from Labour MP Gareth Thomas for LV to disclose how much it was paying advisors on £530 million deal
  • During a dispute between Royal London Insurance and LV, there were many comments 

Kwasi Kwarteng, the Minister of Government has intervened in controversial takeover by LV.

The Business Secretary backed a call from Labour MP Gareth Thomas in Parliament yesterday for LV to disclose how much it was paying advisers on the £530million deal.

His remarks came at a time when LV was in dispute with Royal London, a rival insurance company that wanted to purchase the firm. However, Royal London was dubbed and relegated to the Bain buyout barsons. Mister Kwarteng could be at odds with Malik Karim who is the Tory treasurer. He was also founder of City’s investment bank Fenchurch Advisory Partners.

Fenchurch was one of LV’s top advisers during its sale, which occurred to US private equity company Bain Capital. The Daily Mail reported last week that Fenchurch will receive a multi-million-pound payment for his work. Fenchurch has so far declined to disclose the amount of advisers’ salaries. Clifford Chance and City spinners FTI Consulting are also involved in the transaction.

Kwasi Kwarteng (pictured) has become the first Government minister to intervene in the controversial takeover of LV as he urged the insurer's bosses to come clean over the deal

Kwasi Kwarteng (pictured), has been the first Minister to get involved in the controversial takeover by LV.

When Mr Thomas demanded that LV disclose how much money it was spending, Mr Kwarteng stated that he was a’specially interested’ in the deal. He stated: “I believe…” [Mr Thomas]It is completely right. I believe shareholders and customers have the right to access transparent data. This is something that I strongly support.

Barry O’Dwyer of Royal London has made a competing bid and said that Bain’s proposal for LV had caused ‘near universal dismay’. It was not likely to be voted through. Mark Hartigan (LV chief executive) retorted, accusing Royal London and calling it a ‘hand grenade. Hartigan also called the claims of the firm’s takeover ‘grossly misleading.

MPs have been furious at the sale of LV (formerly known as Liverpool Victoria)

The firm, set up in 1843, has always been a mutual – meaning it is owned by its customers and run for their benefit. Bain is now the US-based investor and profit-hungry boss of the company, which will demutualise this historic business.

The sale of LV, formally known as Liverpool Victoria, has angered MPs across the political divide. Pictured: Malik Karim, the Conservative Party treasurer who could net millions from the LV takeover

MPs have been furious at the sale to LV (formerly Liverpool Victoria). Pictured is Malik Karim (the Conservative Party Treasurer) who stands to make millions off the LV purchase 

Many of LV’s 1.2 million members have written to Mail to express their disappointment at the Bain deal.

Royal London, a mutual also wrote last week to LV’s board, offering to revive the bid it had made for the company.

Yesterday, Radio 4’s Today program featured Mr O’Dwyer saying: “The almost universal dismay that has greeted that” [Bain]proposal, I believe there’s a risk that the proposal won’t be supported by members. Yesterday, LV issued a statement criticizing Royal London.

According to the company, it was ‘grossly misleading’ by suggesting that LV will remain a mutual under the offer.

Royal London retorted, stating that it is open to talks with both LV & Bain to allow the company to purchase the insurer while maintaining its mutual status.

The titt-for-tat war continued. Mr Hartigan charged Royal London with launching a hand grenade in an attempt to disrupt the process. LV members still have time to cast their votes on December 8, 2018. Members can also vote via an online general assembly on December 10.