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.