2nd June 2019
Allianz UK is to acquire 100% of Legal & General Insurance Limited, the general insurance business of Legal & General Group for £242m. The transaction is subject to regulatory approvals.
It is also to buy out the remaining 51% stake in LV General Insurance Group for up to £578m from Liverpool Victoria Friendly Society(LVFS).
The transactions, which are expected to be completed by end of 2019, will:
-Position Allianz as the *number 2 general insurer in the UK with a 2018 combined gross written premium income of £4,029m and a market share of 9%
-Establish Allianz as a top 4 insurer in the UK personal home segment
-Mean 12 million general insurance customers are now part of Allianz in the UK.
“With these two transactions, we are pleased to demonstrate our further commitment to the UK market. I look forward to our business continuing to build on a strong reputation for
technical excellence and customer centricity,” said Niran Peiris, member of the Board of
Management of Allianz SE, responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa.
In 2018, Legal & General home insurance business generated £410m of gross written premiums. As part of the agreement, the Legal & General brand will continue to be
used in the UK general insurance market for up to three years. Customers will continue to be supported as normal.
“We are pleased to announce the purchase of the Legal & General general insurance business which supports our commitment to establish Allianz as a leader in the personal
lines market in the UK,” said Jon Dye, ceo of Allianz Insurance. “The Allianz business is robustly capitalised, has a strong reputation for its focus on customer
service and is committed to delivering the advantages of technology for the benefit of the customer.”
Once the transaction has been completed, the intention is to combine the Legal & General general insurance business with LV GIG.
Steve Treloar, ceo of LV GIG, added “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 GIG we’ll have over 7 million personal lines customers, a gross written premium of over £2bn and be a major player in the UK personal lines market.”
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