Royal London has issued a statement revealing that the firm has had initial exploratory discussions with LV=, as the firm believes it could offer an “attractive future for the members of LV=” as part of “a growing and well-capitalised mutual.”

Royal London approached LV= about a merger in December. The firm made the approach after members of LV= rejected a £530 million takeover offer from private equity firm Bain Capital. Directors of LV= decided this was more attractive than proposals made by Royal London and others in 2020.

However, the Bain proposal would have resulted in LV= giving up its mutual status.

Royal London was reported to be one of 12 parties to have submitted bids for LV= before the company’s board decided to recommend the Bain proposal, The Herald reports.

After members rejected Bain’s proposal, Royal London said in December that it had offered to enter into immediate and exclusive discussions with LV= to agree a mutual merger.

In the statement issued yesterday, Royal London said that there was no certainty that these discussions will result in a transaction.

It added that a further announcement would be made as and when appropriate.