As part of their strategic partnership, originally announced on 4 August 2017, LV and Allianz are today outlining the plans to transfer their respective personal and commercial portfolios. Allianz’s personal home and motor portfolios will transfer to LV GI, the joint venture 49% owned by Allianz, and LV’s commercial portfolios will transfer to Allianz.
It’s anticipated that the transfers will start in the second half of 2018, with on-going support required through until the beginning of 2020. Brokers and partners are being contacted from today to notify them of the transitional plans.
As a result of the plans to transfer the Personal and Commercial portfolios, a number of organisational changes are being proposed:
- At LV GI, around 260 roles, which are currently held by employees who work in the Commercial Broker and Commercial Claims teams, will be put at potential risk of redundancy, subject to consultation.
- In order to manage the additional incoming personal lines business, around 60 new roles will be created at LV GI which will mainly be based in Croydon.
- At Allianz, 140 people working on or supporting personal motor and home business will be put at risk of redundancy, subject to consultation. The roles are primarily based at Allianz’s Guildford and Bristol offices and any redundancies will be phased from Q3 2018 to Q1 2020 in line with the business transfer and run-off programmes.
- 60 new roles will be created within Allianz’s small business team at Maidstone to manage the commercial business transferring across from LV GI.
Employees have been made aware of these changes today and consultations will begin shortly. Where possible, suitable redeployment opportunities will be identified.
Mike Crane, director of broker at LV, said: “It’s never easy making decisions such as these. We understand that the changes we’re proposing will be difficult for some which is why we’re working extremely closely with our people to make sure they get the support they need. We’re also taking the time to speak with our brokers to ensure they fully understand the changes and know the steps we’ll be taking to ensure a smooth transition of their business.
“However, while this news will be difficult for some, we’re obviously looking forward to growing our presence in the personal lines market. We’re committed to maintaining our high standards of service and, working with our brokers, we’re keen to explore new opportunities.”
Simon McGinn, general manager of Allianz added: “These are difficult decisions but the changes will maximise the opportunity presented by our partnership with LV=.They’re part of our clear strategy for our Commercial broker business to build a strong, sustainable platform from which we can deliver for our customers and achieve our profitable growth objective.Any changes will be phased to ensure that we maintain a high quality of service to our brokers.
“Both companies will do their utmost to provide whatever support is needed to help colleagues find other employment opportunities, within Allianz and LV wherever possible.”