But Creedon said LV was now “in a very different place to where it was 18 months ago”, citing a number of changes Bolton has overseen.
These include a suite of new executives, including new chief financial, operating, and risk officers, as well as a “reposition[ing]” of the business to focus on mass affluent customers - a market it believes is underserved, and more “effective management” of its expenses and cost base.
Creedon also cited the development of adviser-focused products, such as its smoothed investment range which have replaced "low-value legacy products" in its with-profit fund, and its income protection and critical illness policies.
On IT transformation, Creedon said LV has made “good progress”, delivering a new equity release system and the recently launched Embark partnership, both of which are part of an “ongoing IT investment plan”.
He said the plan was aimed at providing “more certainty on the future investment needs of the business” and enabling “careful management” of capital.
A spokesperson for LV also told FTAdviser that Cook’s use of the phrase “sub-scale” in November when referencing the 2020 review related to market share, and not capital.
“Our capital position has been and remains very strong with a capital coverage ratio of 198 per cent, [per] our last set of financial results for 2020,” they said.
Between 2017 and 2019, LV also sold its general insurance business in a bid to bolster its then-weak capital position.
LV did not address requests for more information regarding the latest statistics on falling memberships, and how it’s managed to continue without the £100mn investment it said it needed less than two years ago.
What this means for members and advisers
For LV members and advisers, the mutual told FTAdviser the latest update would mean there would be investment in digital tools and automation.
It would also mean continued access to its range of Smooth Managed Funds, Equity Release, Income Protection and Critical Illness.
ruby.hinchliffe@ft.com
