L&G put its home insurance business unit up for sale last year after disappointing figures
Allianz is in talks to buy Legal & General’s general insurance arm, according to Sky News.
L&G put the business unit up for sale last year. Sources told the broadcaster Allianz is in exclusive talks, with a deal thought to be close. Analysts told Sky the business is valued at between £250m and £350m.
Allianz is set to take up a majority stake in LV= later this year, but it is not clear if the business would be rebranded under LV=.
A spokesperson for Allianz declined to comment when contacted by Insurance Times.
L&G provides home and pet policies to thousands of customers in the UK, and it is thought the company sees this segment as non-core.
In December, Insurance Times reported that Direct Line Group was interested in buying the life insurer’s GI arm for £400m.
Three years ago, an auction was held to offload the insurer, but for reasons that never went public, it was stopped.
The general insurance arm recorded a £37m operating profit in 2017, down 29% on the year before. It blamed “non-weather related claims” as the reason, as they were higher than expected.
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