LV= has confirmed that its discussions with Royal London over a potential merger have ceased.

Talks between the pair had started at the beginning of the year after Royal London issued a statement in December suggesting that it could offer an “attractive future” for the members of LV=.

However, a statement released by LV= today has revealed that the different mutual models of the companies mean such a merger would not be in the best interests of its members.

LV=’s incoming chair, Seamus Creedon, thanked Royal London for its engagement and added that the insurer is looking forward to operating alongside it as part of a “vibrant mutual sector”.

“The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the Board’s belief in, and commitment to, the continuation of our status as an independent mutual,” Creedon commented.

“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand. We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities. We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”

Royal London group chief executive, Barry O’Dwyer, added: “Mutuals are owned by their customers and are run for their benefit. Our offer to preserve LV=‘s mutuality through a merger with Royal London was based on an understanding that LV= did not have a viable future as an independent company. 

“For Royal London’s customers and members, nothing changes. We remain committed to delivering great value products, backed up by market-leading customer service. We look forward to sharing a substantial level of profits with our eligible customers in April, as we normally do.”

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