Are you one of 12,400 Peterborough people who could be due a cash windfall if a business sale succeeds?

Thousands of Peterborough people could be due a £600 windfall if a multi-million pound takeover of an insurance provider secures their support.

Thursday, 2nd December 2021, 5:00 am
Thousands could be in line for a cash windfall. EMN-210624-122350001

There are estimated to be about 12,400 Peterborough policy holders with insurance and retirement provider LV= which has been lined up for a takeover that could result in a £212 million national share out.

Peterborough policy holders with the 178-year-old mutual, previously known as Liverpool Victoria, could stand to gain £2.4 million between them.

But is thought many of the policy holders will be unaware of the pending £530 million takeover deal by equity giant Bain Capital.

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Now those policy holders are being urged to check their email boxes for details of the takeover plan and how they can vote to approve the move or not.

Analysts reckon there across the UK there are 1.2 million policy holders at the mutual and many will not realise they are automatically members and so entitled to cast a vote to ensure they land the windfall.

Emails to all policyholders were sent out this week reminding them to take part in the vote.

Every member will get a £100 boost, with 300,000 who hold ‘with profits’ accounts entitled to initial payments of £600 and additional benefits worth up to £2,000 depending on their policy.

It requires a 75 per cent majority of voters to back the sell-off.

But members are warned if proposal fails to get the go ahead, members may have to foot the bill for vital future investment needed for the business to survive, meaning higher premiums and charges.

Investment expert Jason Hollands, managing director of online investment service Bestinvest, said: “A lot of people don’t understand that as LV= is a mutual, policy holders are co-owners and entitled to vote.

“They may not even know they have an email inviting them to vote, but they should search their inbox and junk mail to see if they have one.

“It’s really important that they vote on this, otherwise their voice won’t be heard. The email could be worth a lot of money if they help vote this takeover through.

“Most policyholders would be entitled to a hundred pounds, and people with profit bonds are potentially looking at £2,000.”

Directors at LV= say the deal is the best vailable and are backing it because it gives members a payout, retains the society’s ethos, and secures the future of offices in Bournemouth, Exeter and Hitchin.

Bain has also promised £160 million to improve IT systems and launch new products to boost the number of policyholders to two million.

Mr Hollands said: “The business is badly in need of capital, which is why they put up the ‘For Sale’ sign. The Bain Capital bid was the most attractive one, according to the management.”

Members can vote by post or online before 2pm on December 8, or in a web session on December 10.