Thus, ALLIANZ UK to acquire 100% of Legal & General Insurance Limited, the general insurance business of Legal & General Group Plc for GBP 242 million. The transaction is subject to regulatory approvals. At the same time, ALLIANZ UK will buy out the remaining 51% stake in LV General Insurance Group (LV GIG) for up to GBP 578 million from LIVERPOOL Victoria Friendly Society (LVFS).
The insurer mentioned 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 GBP 4,029 million and a market share of 9%. At the same time, the transactions will establish ALLIANZ as a top 4 insurer in the UK personal home segment.
Jon DYE, Chief Executive Officer of ALLIANZ Insurance, said:
"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. (...) 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.
Regarding the LV GIG transaction, Jon DYE said:
"Our joint venture has been a great success and taking 100 percent ownership of LV GIG creates the best platform for taking the business forward (...) We have experienced the value and the culture that exists within LV GIG and we will continue to protect the integrity of these important assets."