LV= considers sale of Hero
by Gill Montia
Story link: LV= considers sale of Hero
Following its acquisition of Highway Insurance in October, friendly society LV= has confirmed that it has received an approach from investors interested in buying Hero, the direct insurance subsidiary of Highway.
LV= is considering its options with regard to Hero, saying that when it acquired Highway the intention was to keep the business whole, as an addition to its general insurance division.
However, LV= managing director, John O’Roarke, explains that the board has a responsibility to its members and employees to consider any offers that are presented.
Mr O’Roarke adds that the LV= group is strong financially and not in need of funds raised from a disposal.
Following the acquisition, the mutual is to keep the Highway brand and run it alongside ABC Insurance, its existing broker brand.
The group says this has allowed intermediaries to benefit from the choice of two different providers, both dedicated to the broker market.
As LV= is a mutual organisation, owned by its members, Highway is in the process of being de-listed from the London Stock Exchange.