Banking group set to combine back office functions

Lloyds Banking Group is to axe 200 jobs in its general insurance division.

It comes as part of a shake-up of back office functions when Lloyds will combine the support operations of Lloyds TSB and HBOS General Insurance, including sales, marketing, actuarial and underwriting operations.

Jobs in the bank's Newport, South Wales and Yorkshire operations will be cut.

Philip Loney, managing director, general insurance, said: “We are bringing together these essential support functions in order to help meet the needs of our customers and the general insurance division.

“We recognise that this is difficult news for our affected colleagues. We are committed to working through these changes with our colleagues carefully and sensitively and will seek to use natural turnover and redeployment wherever possible.”

Lloyds is 43%-owned by the government. It agreed to buy buy rival HBOS last year.