Legal & General Insurance Limited is an established and successful provider of personal home insurance products in the UK. In 2018, the company generated gross written premiums of £410 million. Under the terms of the agreement, the Legal & General brand will be used in the UK non-life insurance market for up to three years. Customers will continue to be taken care of as usual. These acquisitions are expected to make Allianz the second largest non-life insurer in the UK after Aviva. Steve Treloar, Chief Executive Officer of LV GIG, will become a member of the Board of Directors of Allianz Holdings plc, which oversees and manages all of Allianz UK`s legal entities. He will report to Jon Dye, Chief Executive Officer of Allianz Holdings plc. Steve will join the Allianz UK Board of Directors along with colleagues Kevin Wenzel (Chief Finance Officer) and Kieran O`Keeffe (Chief Risk Officer). LONDON, 31. May (Reuters) – Britain`s Legal & General will sell its non-life insurance business to a British subsidiary of Germany`s Allianz for £242 million ($305 million), the companies said on Friday. Following the transaction, it is planned to combine the Legal & General general insurance business with LV GIG. 1. Allianz UK acquires 100% of Legal & General Insurance Limited, the general insurance business of Legal & General Group Plc, for £242 million.
2. Allianz Holdings plc has completed the acquisition of 100% of the general insurance division of Legal & General (L&G GI) for £242 million. This business will be merged with LV GIG, although the Legal & General brand will be used in the UK non-life insurance market for three years. With these acquisitions combined, Allianz is expected to significantly expand its presence in the UK and position itself as the second largest non-life insurer in the region. “We are pleased to announce the acquisition of the legal and general insurance business, which supports our commitment to making Allianz a leader in the UK retail market,” said Jon Dye, Chief Executive Officer of Allianz Insurance. “Allianz`s business is solidly capitalized, has a reputation for focusing on customer service and strives to leverage technology for the benefit of the customer.” German insurer Allianz has agreed to acquire the general insurance businesses of Liverpool Victoria Friendly Society (LV=) and Legal & General (L&G) to strengthen its presence in the UK. Allianz is set to become the second largest non-life insurer in the UK after acquiring the non-life insurance businesses of Legal & General and LV= in transactions worth more than £800 million. Jon Dye said: “This is a pivotal moment in the history of the Alliance in the UK. These two agreements create an impressive player in the UK non-life insurance market with a balanced business across all personal and business sectors, extremely strong brands and an excellent team of people focused on serving our customers.
The money from the sale will be reinvested in its core business, the company said. “The sale of the general insurance business is the right decision for our clients and shareholders,” said Nigel Wilson, CEO of Legal & General. “We continue to focus on implementing our strategy and consistently allocating shareholder capital.” Following the completion of the £1.078 billion acquisition of the general insurance arm of the Liverpool Victoria Friendly Society (LV=), Allianz has become the country`s second largest insurer after completing the proposed acquisition of Legal & General`s (L&G GI) general insurance division for £242 million. The German insurer pays £242 million for legal and general business and £578 million for a 51% stake in LV General Insurance Group (GIG) of the Liverpool Victoria Friendly Society (LVFS). In 2017, Allianz made its first major foray into the UK insurance market, acquiring a 49% stake in LV`s general insurance business to become the third largest insurer in the market. The closing of these transactions positions Allianz Holdings plc as the #2 general insurer in the UK based on 2018 figures. The combined business recorded gross premium written income of more than £4 billion and a market share of 9%. The transaction was first announced at the end of May 2019, along with the news that Allianz will acquire Legal & General Insurance Limited, the general insurance business of Legal & General Group. The agreements will give the combined company 12 million general insurance customers in the UK, with a market share of 9% and Allianz only behind Aviva in size. L&G`s general insurance consists primarily of home insurance with a small pet insurance portfolio.
Richard Rowney, CEO of LV= Group, said: “We have managed to increase the value of our non-life insurance business to over 1 billion. GBP, and this agreement allows us to realize this value for the long-term benefit of our members and strengthen our overall capital position. “Over the past few years, we have managed to make our company a major name and the addition of Legal & General`s general insurance business further strengthens our position. Once the business is transferred to LV GIG, we will have more than 7 million retail customers, a gross subscribed premium of over £2 billion and will be a major player in the UK retail market. “It looks like nothing was found there. Maybe you`re trying a search? Allianz Rechtsschutz strengthens its sales and distribution team Legal & General will use the funds to reinvest in its core business and complete the transaction in the second half of 2019. The portfolio for sale mainly includes private clients who have household insurance. ($1 = 0.7930 pounds) (Reporting by Lawrence White; In addition, the transactions will increase Allianz`s premium income in the UK to more than £4 billion and its market share to 9%, according to Reuters. Thank you very much! Please tell us what we can do to improve this article. Under the terms of the agreement, Allianz will acquire the remaining 30.1% stake in LV= General Insurance (LV=GI) in a transaction worth GBP 365 million (USD 461 million). Allianz UK has agreed to acquire the remaining 51% of LV GIG held by LVFS for a total price of up to £578 million.
The transaction is expected to close by the end of the year.