The boss of mutual life insurer LV=, who led the group’s ill-fated attempt to sell itself to a US private equity firm, is stepping down seven months after the deal failed.
Mark Hartigan said he would stay on as interim chief executive until a successor is appointed.
His departure comes after he faced calls to quit following the botched £530m deal, when LV=’s 1.2 million members voted in December against the proposed sale to Bain Capital.
Bournemouth-based LV= revealed in March it had paid £33m in costs for its failed sale to Bain Capital, while Mr Hartigan received a £500,000 bonus - on top of his £435,000 salary - despite the unsuccessful transaction. LV= chairman Alan Cook resigned after the deal fell through.
Simon Moore, who has since replaced Mr Cook as chairman, said Mr Hartigan had led a “successful turnaround of the business” in spite of the failed deal.
He added: “With LV= now looking forward to the future with confidence, the board and Mark have agreed that the time is right to appoint a permanent chief executive to build on this platform and further develop a sustainable mutual future for LV=.”
The group has kicked off the search for a new chief executive, with help from headhunters Russell Reynolds Associates.
Mr Hartigan said: “Thanks to the progress of our plan to transform the business, and despite challenging trading conditions, it is now well capitalised and clear in its future plans.
“With a strong leadership team in place and a clear plan for the future it is the appropriate time for me to step aside as interim chief executive.
The takeover saga thrust LV= into the limelight last year, with politicians wading into the debate amid concerns over LV=’s future in the hands of a private equity firm, the payouts being offered to members and motives behind the sale.
Bosses at LV= said at the time the deal with Bain Capital was the only deal on the table that would protect about 1,000 jobs in the South West.
Members would have handed over ownership of the group in return for £100 each while with-profits members would have been given an additional boost when their policies matured, but the payouts were seen as paltry.
It also emerged that rival Royal London had offered a higher £540m to merge with LV= before the board backed the Bain deal. Royal London then rekindled talks over a possible merger after the Bain vote, but both sides ended up walking away.
READ NEXT
- Online marketplace OnBuy appoints new marketing director
- Clifton Asset Management acquires Aberdeen financial services firm Burnett & Reid
- Bristol IT firm BOM appoints new cyber security director
- Devon shipyard wins £55m contract supporting 100 jobs
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
