Allianz Group and Liverpool Victoria Friendly Society (LV=) have completed the first stage in the creation of their joint venture and partnership through the planned sale of a 49% stake in LV=’s UK General Insurance businesses (LV=GI) to Allianz Group.
The venture creates a general insurance business with over 6 million customers and gross premiums written in excess of £1.7bn ($2.3bn). It allows Allianz and LV= to take a role in the growing UK retail sector by creating a customer-centric insurer in the personal home and motor insurance markets.
This transaction creates the third largest personal insurer in the UK market.
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 £1.020bn for 100% 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.