Mutual insurance, retirement and investment group LV= plans to convert to a company limited by guarantee.

Currently, LV= is a friendly society (a type of mutual insurer) and therefore governed by the Friendly Societies Act. LV= argues that many of that Act’s provisions are out of date and the board believes it restricts its ability to manage the business effectively and in the best interest of LV= members.

The proposed change to a company limited by guarantee would result in LV= being governed by the Companies Act rather than the Friendly Societies Act. However, it will not change the company’s mutual status.

Richard Rowney, LV= group chief executive, said: “Our proposed changes are about LV=’s future as a thriving, successful mutual creating value for our members.

“If implemented they will improve our ability to manage the business in the best interest of members and provide greater flexibility and freedom to compete over the medium to long term.”