£242m deal for household policies
Legal & General offloads general insurance to Allianz
The deal includes home and contents cover (pic: L&G)
Legal & General is selling its general insurance business to Allianz Holdings in a £242 million deal expected to complete in the second half of this year.
The proceeds from the disposal will be reinvested in Legal & General’s growing core businesses.
The business being sold is principally household insurance policies. In 2018 gross written premiums were £410 million and operating profit was nil.
Allianz UK is also buying out the remaining 51% stake in LV General Insurance Group for up to £578 million from Liverpool Victoria Friendly Society.
Legal & General said it is confident that selling its general insurance business to one of the world’s largest property and casualty insurers will mean that customers can trust they are in safe hands.
The sale is the latest in a programme of disposals in recent years across the group’s non-core businesses, including its historic savings businesses, its international insurance businesses in the Netherlands, France and India, and various other non-core businesses. These disposals have generated proceeds in excess of £1.5 billion.
Nigel Wilson, CEO of Legal & General said: “Selling the General Insurance business is the right decision for our customers and shareholders.
“We continue to focus on delivering against our strategy, allocating shareholders’ capital rigorously. We are market leaders in ten UK markets and have a growing presence in the USA and an emerging presence in Asia. Deploying capital in these businesses will deliver better outcomes for all our stakeholders. Our GI customers will benefit from the strength and capability of Allianz in the household insurance sector.”
Jon Dye, CEO of Allianz UK said: “This is a good outcome for all the parties involved and acquiring a high quality business with two million customers to combine with the LV= General Insurance business is a strong result. The Allianz Group has worldwide insurance experience, is robustly capitalised and has a strong reputation for customer service and these strengths will be applied to grow the business.”