LV= weighing options for equity-release mortgages

Complex assets left out of matching adjustment application, but could be added when internal model is approved

LV= is still considering whether to include ERMs in its matching adjustment portfolio

UK insurer LV= is awaiting the approval of its matching adjustment (MA) application made at the end of last year, which it expects in the coming weeks. But a notable omission from the asset portfolio currently under review is the firm’s equity-release mortgage (ERM) portfolio. 

Emily Penn, head of asset liability management at LV=, told the insurer is still considering whether to include its near-£600 million ($863.3 million) of ERMs in its MA portfolio. The asset class could still be a