LV said it had revived talks with rival mutually owned insurer Royal London after the company’s members rejected a takeover by a US private equity group in December.
LV, whose board had previously turned down a merger approach from Royal London, on Monday said it was discussing how the two insurers could “co-operate to the benefit of both sets of members”.
The future of LV, which was founded in 1843, was thrown into uncertainty after the life insurer failed to secure the support of 75 per cent of its 1.1mn members for a £530mn buyout by private equity firm Bain Capital in December.
The proposed deal, which would have ended its status as a member-owned mutual, drew pushback from politicians and customers.
LV chair Alan Cook, who previously said he would retain his position until “a way forward is agreed”, will step down in April to be replaced by Seamus Creedon, the insurer said on Monday.
Royal London separately confirmed it was in “exploratory discussions” with LV.