Insurer Allianz has announced that it is set to buy a 49 per cent stake in LV=’s general insurance division in a deal worth £500 million.
The move is the just the first step in a deal which will eventually see Allianz own 69.9 per cent of the business, paying £713 million in total when it is completed. There has been speculation about such a deal since May of this year, with Sky News breaking the story earlier this week. The first stage of the transaction is expected to close during the second half of this year.
Allianz said of the deal: “While the joint venture offers Allianz the opportunity to partner with a trusted brand offering excellent customer service, it provides LV, the UK’s most trusted and most recommended insurer, the financial strength and expertise to further grow in general insurance through this partnership and enables it to continue to develop in its core life and pensions market.”
The business created from the deal, according to Allianz, will feature Allianz’s personal home and motor insurer’s renewal rights while AIlianz will obtain LV GI’s commercial insurer’s renewal rights.