Allianz has bought a 49% stake in LV=’s UK general insurance business
Allianz has bought a 49% stake in LV=’s UK general insurance business for £500m.
The deal completes the first stage of the joint venture and strategic partnership between the two companies announced last year.
Jon Dye, chief executive of Allianz Insurance (pictured left) said: “This is a landmark moment in the history of both companies. Now that the deal has been finalised, we can start work on detailed plans for our joint venture which will build on the best of our digital capabilities, technical excellence and customer focus to become a Top 3 UK insurer.”
Steve Treloar, chief executive of LV= GI (pictured right), said: “Following regulatory approval we have now completed the final step in creating our joint venture and strategic partnership with Allianz. It’s an honour to lead this new business and I look forward to working together with my colleagues to make LV=GI the number one choice for brokers and customers.”
The second stage of the transaction will take place in 2019 when Allianz will pay an additional £213m for a further 20.9% stake in LV= GI through an agreed, forward purchase based on a total valuation of £1.02 billion for 100% of LV= GI.
LV= has a put option under which it can sell all or part of its remaining shares to Allianz at any time.