LV= is to be sold to a private investment group for £530million.

The deal will see the sale of the Dorset employer’s savings, retirement and protection group to Bain Capital by the end of 2021.

The LV= brand will continue but it will no longer be a mutual company.

Its chairman has said the deal provides "unrivalled" commitment to the business and its people.

LV= had already sold its general insurance business to Allianz, with the two businesses coexisting at its County Gates headquarters.

Alan Cook, chairman of LV=, said: "As a newly standalone life and pensions business in an increasingly competitive market, the board recognised that LV= required significant long-term investment to be sustainable.

“This transaction is the culmination of an extremely thorough and robust strategic review - followed by a structured sale process to secure the best long-term future for our members, employees, other stakeholders and the business.

“The board is delighted to have secured an attractive price and unanimously agreed that the transaction with Bain Capital presents an excellent financial outcome for all our members, as well as offering an unrivalled commitment to LV='s future prospects, business and people. We look forward to engaging fully with our members in advance of a member vote in the first half of 2021."

LV=’s with-profits policies will be ring fenced in a separate fund and closed to new business. The amount of capital available for distribution is expected to increase by up to 40 per cent, which will be used to increase payments to members as their policies mature.

The deal is subject to regulatory approval and backing from LV members. It is expected to be complete by the end of 2021.

LV=’s chief executive, Mark Hartigan, said: "The partnership with Bain Capital recognises the opportunity to further invest to develop LV= at a time when it is well positioned, growing market share, expanding its products and trading resiliently, despite the pandemic. While our corporate structure will change, our culture and values remain the same.

“The board is excited by the opportunities it creates for our people, partners and customers - enabling the LV= brand and business to further develop as a major force in the UK life insurance market. "

Matt Popoli, global head of insurance at Bain Capital Credit, said: "We are delighted by the opportunity to provide long-term support to LV='s board of directors and management team on this transaction, which delivers certainty and value to LV='s members.

“We are investing in a unique company with an impressive management team and employee base, that is already well positioned in the market, with a clearly established product set, strong IFA relationships and a reputation for customer excellence.

“We have been impressed by LV='s initiatives to further improve its market position, the benefits of which are already emerging. Our principles and values are in direct alignment with those of LV= and we firmly believe in a shared vision for the future of the business. We look forward to working collaboratively to achieve these shared goals, which include delivering profitable growth, while preserving LV='s strong financial position, independence and rich heritage dating back to 1843."