"The difference is that other providers will want the premiums to be brought up to date."
According to LV's latest Wealth and Wellbeing Monitor, which surveyed 4,000 UK adults online in December, almost half of self-employed people (47 per cent) said their financial situation had worsened in the final quarter of the year.
About a third (30 per cent) described themselves as struggling financially, while 44 per cent worried about money.
One in five self-employed had asked a mortgage provider, insurance provider or bank for flexibility, compared to 4 per cent of all consumers.
Going it alone
LV meanwhile, has decided to continue as an independent brand, suggesting a takeover or merger deal is no longer on the cards.
In a letter to members incoming board chairman Seamus Creedon said in light of LV’s “improving business performance” over the past 18 months the mutual was now “appropriately capitalised and trading well”.
This marked a U-turn on LV's previously stated position, which was that the mutual was in need of so much investment that the risks of remaining independent were "too high".
Royal London and LV abandoned merger talks last week after concluding a deal would not be in the best interests of their respective members.
This was after a potential deal with private equity firm Bain Capital, which would have seen LV demutualise, had also fallen apart.
carmen.reichman@ft.com
