The deal for Legal and General’s insurance business is expected to complete later this year, the company said.
It will see two million customers with household insurance policies transfer to Allianz. The sale will be for an intial £242 million with possible future payments.
L&G, which has 35 underwriters based in its Edinburgh office at Atholl Crescent, said in 2018 gross written premiums were £410 million, but there was no operating profits.
Nigel Wilson, CEO of Legal & General, said: “Selling the General Insurance business is the right decision for our customers and shareholders. And I would like to take this opportunity to thank our GI colleagues for their contribution to Legal & General.
“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 2 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.”
