Allianz buys L&G general insurance business for £242m

The transaction is expected to complete in the second half of 2019.

It was reported last month that Allianz were in talks to buy the business, having beaten off competitors such as Direct Line.

The acquired business principally consists of house insurance policyholders. In 2018, it had gross written premiums of £410m.

The deal comes on the heels of Allianz buying the remaining 30.1% stake in LV general insurance for £365m.

Legal & General has raised in excess of £1.5bn in recent years by selling off its non-core business, including its savings businesses and international insurance business in France, the Netherlands and India.

Nigel Wilson, CEO of Legal & General, said: “Selling the general insurance business is the right decision for our customers and shareholders.”

He continued: “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.”