One of the biggest consolidation deals in the UK insurance sector has reached its conclusion, as Allianz Holdings plc has completed the acquisition of the remaining 51 percent of the LV General Insurance Group (LV GIG) from Liverpool Victoria Friendly Society (LVFS). The total consideration by Allianz for 100 percent of LV GIG will be up to £1.078 billion.
LV is one of the big names in car and home insurance and it will be interesting to see how Allianz can modernise and streamline its back office processes, claims and develop new niche products. Allianz launched three innovation centres back in 2018, and the LV= branding, with its green heart imagery, lends itself perfectly to a new range of sustainable insurance products, wellness and family orientated services.
The completion of these deals positions Allianz Holdings plc as the number two general insurer in the UK, based on full year 2018 figures. The combined business had a gross written premium income of over £4 billion and a market share of 9 percent.
Steve Treloar, Chief Executive Officer of LV GIG, will become a member of the Allianz Holdings plc Board which oversees and manages all of Allianz UK’s legal entities. He will report to Jon Dye, Chief Executive Officer of Allianz Holdings plc. Steve, along with fellow LV GIG colleagues Kevin Wenzel (Chief Finance Officer) and Kieran O’Keeffe (Chief Risk Officer) will join the Allianz UK management board.
Mike Crane, current Managing Director of LV GIG Broker business, has been appointed as Chief Executive Officer of L&G GI (subject to regulatory approval). He will continue to report into Steve Treloar and sit on the LV GIG Executive Committee as both Chief Executive Officer of L&G GI and Managing Director of LV GIG Broker.
Jon Dye said
“This is a pivotal moment in the history of Allianz in the UK. These two deals create a formidable player in the UK general insurance market with a balanced business across personal and commercial lines, tremendously strong brands and a great team of people, focused on delivering for our customers.
“We will be looking to build upon the great success of our joint venture with LV GIG in home and motor insurance, strengthened further by the acquisition of L&G GI. With Petplan already being the world leader in pet insurance and the Allianz position as Commercial Insurer of the Year in 2019, we have a strong platform to continue our profitable growth story.”
Steve Treloar added
“This is an exciting day for LV GIG and we’re very happy to now be part of Allianz and have our colleagues from L&G GI also join us. For the last few years, we’ve worked incredibly hard to make LV= the brand it is today and, although we’ve achieved an incredible amount, I believe that with the backing of Allianz, and L&G GI being part of our business, the best is truly yet to come. I’m excited to see what the future brings.”