Allianz to become second largest UK general insurer with L&G and LV deals
Allianz has snapped up the Legal and General general insurance business for £242m.
It came as Allianz also agreed to buy up the remaining 30.1% in LV= general insurance for up to £365m.
Allianz claims the deals will position the business as the UK’s second largest general insurer, with gross written premium income of £4.03bn, 12 million general insurance customers and a market share of 9%.
The German group claims it will also establish the business as a top four insurer in the UK personal home segment.
L&G will use the funds to reinvest in core propositions across life, pensions and savings.
Consisting mainly of personal home insurance products, in 2018 the L&G general insurance arm generated gross written premiums of £410m.
Allianz announced the Legal & General brand will continue to be used in the UK general insurance market for up to three years and that customers will continue to be supported as normal.
Once the transaction has been completed, the intention is to combine the Legal & General general insurance business with LV GI.
Steve Treloar, chief executive of LV GI said: “Over the last few years, we’ve successfully grown our business to become a major household name and the addition of Legal & General’s general insurance business further strengthens our position.
“Once the business transfers to LV GI we’ll have over seven million personal lines customers, a gross written premium of over £2bn and be a major player in the UK personal lines market.”
Nigel Wilson, Legal & General chief executive, said: “Selling the General Insurance business is the right decision for our customers and shareholders. And I would like to take this opportunity to thank our GI colleagues for their contribution to Legal & General.”
Fenchurch Advisory handled the sale.
The deal comes as Allianz and LV= step up their integration.
Both deals are expected to be completed by the end of 2019.
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