LV= has spent £33million on its aborted sale of the business to an American private equity fund, while its chief executive is in line for bonuses totalling £511,000.

The figures have prompted a Labour MP to call on the boss of the Dorset-based business to quit.

Results for 2021 show the life, pensions and investment provider saw trading profit rise to £29million, from £9m the year before, with new business up by nearly a quarter.

But the member-owned mutual recorded a loss before tax and members’ bonuses of £66m after a profit of £37m in 2020.

LV= spent on £21m on a strategic review to prepare for the planned sale to Bain Capital, on top of £12m spent in 2020.

The sale collapsed last December after it was backed by 69 per cent of voting members instead of the required 75 per cent.

Chief executive Mark Hartigan was paid £435,000 in 2021 plus a £204,000 bonus and another £307,000 in a deferred bonus, payable over three years.

His total remuneration came to £1.01m, compared with £1.2m in 2020.

Labour MP Gareth Thomas, who chairs an all-party group on mutual organisations, called Mr Hartigan’s bonus “shocking” and urged him to quit.

“After his plan to demutualise and sell up to the controversial American private equity giant Bain Capital wasn't backed by almost 90 per cent of LV's owners, it is extraordinary that the board can think such a payout for poor performance is justified,” he said.

“Mr Hartigan needs to leave and be replaced by someone who is genuinely committed to running a mutual business properly.”

A spokesperson for LV= said Mr Hartigan’s bonus was set by a committee “subject to stretching individual and business performance outcomes and was “significantly lower” than the past two chief executives.

“Mark has led the successful turnaround of the business over the last 18 months, strengthening the commercial performance and improving the sustainability of the business. We have outperformed both our new business volumes and profitability targets with significant growth in sales and trading profit,” the spokesperson said.

In LV=’s annual report, acting chairman Seamus Creedon said the board was “naturally disappointed” that the sale to Bain Capital was not approved.

“Through this process we have listened, we have learned and we know we have to do better at engaging our members in the future,” he said.

“In particular, we have heard members’ feedback on the importance of a sustainable future for the LV= brand.”

Mr Hartigan said: “LV= has outperformed both our new business volumes and profitability targets with significant growth in sales and trading profit. Thanks to the progress of our plan to transform the business, we start 2022 well capitalised and clear in our future plans.”

He added: “LV= is a great business and we’re determined to build a successful future.”

The company paid £38m to with-profits members in 2021, including an exit bonus of £10m after LV=’s general insurance arm was sold to Allianz.