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Fired boss of insurer LV= ousted after takeover failure | business news

Seven months after a controversial takeover was rejected by members, the CEO of LV=, the mutual insurance company, is set to be put to the sword.

Sky News can exclusively reveal that Mark Hartigan, who has run LV= for just over two and a half years, will be leaving the company in the autumn.

His departure could be announced as early as Monday morning.

Russell Reynolds Associates, the leading executive boardroom headhunter, is said to have been hired to find Mr. Hartigan’s successor.

The board of LV= has come under intense pressure to sack Mr Hartigan since the collapse of a £530m takeover by Bain Capital, the US-based private equity firm, last December.

The transaction had come under fire from members and politicians furious at plans to sell ownership of one of the most historic names in UK insurance.

Mr Hartigan had insisted that acquiring Bain was essential to safeguarding LV=’s future, but was attacked when he subsequently insisted it had a viable independent strategy.

After the deal fell through, Royal London – LV=’s mutual – made a second merger attempt, but those discussions quickly stalled.

LV= provides life insurance, pensions and investment products to millions of people across the UK.

It was founded in 1843 and was formerly known as the Liverpool Victoria Friendly Society.

The mutual has been transformed in recent years after selling its general insurance arm to Germany’s Allianz in a two-stage deal completed in 2020.

In June it announced the appointment of Simon Moore, a former Barclays manager, as the new chairman.

Mr Moore replaced Allan Cook, who resigned on the same day the Bain deal missed the required threshold for a vote just weeks ago.

Mr. Hartigan’s departure is believed to have been orchestrated by Mr. Moore and his fellow board members.

It was unclear if he would receive any form of payout.

Anger at the LV= boss was compounded in March when it was revealed he had accepted a bonus of more than £500,000 for last year despite the disastrous handling of his future.

Mr. Hartigan, a former Zurich manager, has turned around LV=’s business development during his limited time with the company.

LV= is now expected to seek an experienced industry leader to advance its strategy of securing new distribution deals to replace the outgoing CEO.

LV= declined to comment Sunday night.

Fired boss of insurer LV= ousted after takeover failure | business news

Source link Fired boss of insurer LV= ousted after takeover failure | business news

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