Global insurer Allianz is to acquire Legal & General Insurance Limited, the general insurance business of Legal & General Group, in a deal worth £242 million.
In addition, Allianz UK has also announced a deal to buy out the remaining 51% stake in LV General Insurance Group for up to £578 million from Liverpool Victoria Friendly Society (LVFS).
Once tied up, these deals will see Allianz substantially broaden its UK presence, positioning it as the second largest general insurer with a 2018 combined gross written premium income of £4 billion and a market share of 9%.
It will also establish the company as a top 4 insurer in the UK personal home segment and mean 12 million general insurance customers are now part of Allianz in the UK.
The firm has stated that 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, Chief Executive Officer 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
Once the transaction has been completed, Allianz says the intention is to combine the Legal & General general insurance business with LV GIG.
Steve Treloar, Chief Executive Officer 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 £2 billion and be a major player in the UK personal lines market.”