Allianz and LV= move forward
Allianz Group and Liverpool Victoria Friendly Society (LV=) have completed the first stage in the creation of their joint venture and strategic partnership through the planned sale of 49-per-cent stake in LV=’s UK General Insurance businesses (LV=GI) to Allianz Group.
The venture creates a general insurance business with over six million customers and gross premiums written in excess of £1.7 billion. A statement from Allianz read: that the move 'allows Allianz and LV= to take a leading role in the growing UK retail sector by creating a strong and customer-centric insurer in the personal home and motor insurance markets'.
The second stage of the transaction will take place in 2019 when Allianz will pay an additional £213 million for a further 20.9-per-cent stake in LV= GI through an agreed, forward purchase based on a total valuation of £1.020 billion for 100 per cent of LV= GI. As announced in August, LV= has a put option under which it can sell all or part of its remaining shares to Allianz at any time.