Ex-Bupa boss David Hynam to nurse LV back to health

Mutual insurer LV has appointed a new CEO to replace disgraced boss Mark Hartigan.

The Bournemouth-based group has appointed David Hynam, former head of UK and global markets at health insurer Bupa and chief operating officer of French insurer AXA, as head of the company.

Hartigan announced plans to step down in July after his bid to sell LV to US private equity shark Bain Capital was voted down by outraged members last December.

His decision came after policyholders — who own the company because of its mutual status — launched a campaign to evict him at the company’s annual meeting next month.

LV’s customer-owned structure is key to its history. The 179-year-old company was founded to help Liverpool’s poor pay for decent funerals, and the reciprocity meant it offered reasonably priced products without making a profit for cash-hungry shareholders.

The planned sale to Bain raised concerns that this focus would weaken earnings. Members were also outraged when it was revealed they would only receive around £100 each from the sale.

The blocking of the takeover followed a Save LV campaign by the Mail, backed by members, industry experts and politicians.

LV was also outraged after the board initially backed Hartigan after the failed takeover, while also handing him a £511,000 bonus on top of his £435,000 salary for 2021, which was branded a ‘reward for failure’.

Hynam, 51, said his priority would be to create a “true two-way culture” at LV and realize the company’s “huge” potential and move his business forward.

“I am excited to be part of LV=’s future growth and look forward to seizing opportunities as I face challenges,” he added.

Chairman Simon Moore said Hynam was “a truly market-leading CEO” and “fitted perfectly into LV’s two-way business model.”

Moore added that the appointment marked “a new era for LV” and that he would deliver an “unprecedented speech” to members at the group’s October 18 annual meeting to outline the company’s next steps.

“Under my tenure, LV will be a leading example of the value reciprocity can bring to both its members and wider society and David will be a very important part of that,” said the chairman.

Former banker Moore was hired after his predecessor, Alan Cook, was ousted after the Bain debacle.

At Bupa, Hynam led its response to the pandemic, leading to it becoming the first major health insurer to offer Covid discounts.