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 £4,029 million and a market share of 9 percent
- 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.
The Legal & General general insurance transaction
Legal & General Insurance Limited is an established and successful provider of personal home insurance products in the UK. In 2018, the business generated £410 million 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, 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 customer.”
Once the transaction has been completed, the intention is to combine the Legal & General general insurance business with LV GIG.
Steve Treloar, Chief Executive Officer of LV GIG said:
“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.”
The LV GIG Transaction
Allianz UK has agreed to purchase the remaining 51 percent of LV GIG held by LVFS for a total price of up to £578 million. The transaction is likely to complete at the end of the year.
“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,” said Jon Dye. “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.”