Bain shared fresh details of the proposed takeover and pledged not to saddle the insurer with debts.
The private equity giant said it will invest £264 million to safeguard the pensions of more than 10,000 policy- holders and staff. Bain had previously committed to investing £168 million to fund pension liabilities.
Bain promised to invest £160 million in LV=’s IT infrastructure, the first public pledge on tech. And the investment company said no new debt would be added to LV=’s balance sheet as part of the takeover. LV= will look to reduce its debt pile as soon as possible under Bain’s ownership.
Matt Popoli at Bain Capital said: “To be sustainable and achieve long-term success, LV= needs capital to address its heavy debt pile, fund its pension liabilities and invest for growth.
“As a result of the transaction, LV= will be strengthened with access to more capital and structured with less debt.”
The defence comes as Bain’s takeover of LV= faces mounting opposition from politicians, mutual members and the press.
The £530 million deal was first announced in December 2020 but opposition has grown in recent weeks after it emerged members would receive just £100 each under the terms of the takeover, which will bring an end to the 178-year-old business’s status as a mutual.
Opponents argue members are being shortchanged and oppose the loss of LV=’s mutual status.
Bain beat Royal London, another mutual, in the race to buy LV=. The Mail on Sunday reported that Royal London recently re-approached Bain about a possible break-up bid for LV=.
Popoli said: “Our proposed investment maintains an independent LV=.”
Mutual members will vote on the Bain deal on December 10.