New boss of historic insurer LV braced for grilling from members as he faces them for first time
The new boss of historic insurer LV is braced for a grilling from members as he faces them for the first time tomorrow.
David Hynam is set to address LV’s customer-owners at the annual general meeting, just weeks after replacing beleaguered chief executive Mark Hartigan.
But Hynam, former UK boss of Bupa, and new chairman Simon Moore are in for a rough ride as members prepare to question them over bonuses awarded to Hartigan, and how they will push LV forward.
Rough ride: David Hynam is set to address LV’s customer-owners at the annual general meeting, just weeks after replacing beleaguered chief executive Mark Hartigan
The life insurer, founded in 1843 to help the poor of Liverpool pay for a decent burial, is a mutual – owned by its customers and run for their benefit. Last year, Hartigan and then-chairman Alan Cook announced that they planned to sell the business to private equity shark Bain, claiming the business needed investment to stay afloat.
Members were offered £100 each for giving up their share of the firm. It also emerged Hartigan was likely to pocket a generous pay package if he remained at the helm under Bain’s control. Members voted the deal down last December – after LV had spent more than £30m of their money on the preparations.
Trust in Hartigan and Cook had plummeted and both left the business. But despite this, Hartigan was awarded a £511,000 bonus in 2021. Member John Higgins, 86, said: ‘It is frustrating that one of the men who took us into this blind alley with Bain has spent all this money belonging to the members.’
More than 1,000 members wrote to the Mail in response to this paper’s Save LV campaign over the summer, expressing their lack of confidence in Hartigan.
LV said the meeting, to be held in Bournemouth and online tomorrow, was ‘open to members only’.