Following completion Allianz will own 100% of LV=GI for a total of up to £1.078bn.
Liverpool Victoria Friendly Society (LV=) has will sell its 30.1% stake in LV= General Insurance to Allianz Group for up to £365m.
Following completion Allianz will own 100% of LV=GI for a total of up to £1.078bn.
Richard Rowney (pictured), LV= group chief executive, said: “We have successfully grown the value of our general insurance business to in excess of £1bn and this deal enables us to realise that value for the long-term benefit of our members as well as strengthening our overall capital position.
“We have recently announced plans to convert to a company limited by guarantee which will provide greater flexibility and freedom to compete over the medium to long term as we continue to build on our heritage and strong brand to create a better mutual for the future, where being a member has more meaningful benefits.”
The transaction will close on 31 December 2019 and following completion Alan Cook, Richard Rowney, David Neave and David Barral will step down from the board of LV=GI. All four will remain on the board of LV=.
The sale marks LV=’s withdrawal from its general insurance partnership with Allianz.
In December 2017 Allianz acquired a 49% stake in LV=GI for £500m, with a second stage of the transaction taking place at the end of 2019, where Allianz will pay £213m for a further 20.9% stake through an agreed, forward purchase.
As part of the transaction, LV= put an option under which it could sell all or part of its remaining shares to Allianz which it has now exercised.
LV= will retain the right to dividends from the 2019 LV=GI financial results and will continue to licence its brand to the general insurance business.
