LV members seek fresh clearout to protect mutual insurer model

Disgruntled members of Mutual LV are calling for more board members after the collapse of the proposed takeover by private equity shark Bain.

Chairman Alan Cook and CEO Mark Hartigan left after members voted against the deal last year. They have been replaced by Simon Moore and David Hynam.

But some members want several non-executive directors (NEDs) who have supported the acquisition of Bain to be replaced with people more committed to the reciprocal model.

Targets include Natalie Ceeney and Suzy Neubert – NEDs who would join the board of directors of a new company if LV had been bought by Bain.

Meanwhile, existing NEDs Seamus Creedon, Colin Ledlie and Susan McInnes had all been with LV when the acquisition was unanimously supported by the board.

“I find it hard to believe that … the new board will really be 100 percent committed to long-term reciprocity,” said LV member Clarissa Johnson.

She added, “I wish there could have been one or two other new people in between the list…with the right experience, plus a proven commitment to reciprocity.”

Johnson said it was time for some “new blood” at the board level.

Calls for a cleanup followed LV’s annual general meeting earlier this month, when Hynam was first offended by members.

MPs are trying to pass new laws to prevent mutual societies from being picked up by private equity firms and milked for money.

The Cooperatives, Mutual and Friendly Societies Bill has been tabled by Labor MP Sir Mark Hendrick.