Allianz strengthens its presence in the UK with two general insurance contracts

Allianz has signed two separate contracts in the property and casualty insurance market in the UK, allowing it to spend £ 820 million in acquisitions, making it the second largest player in the sector.

The German insurer announced on Friday that it has agreed to buy Liverpool Victoria Friendly Society the remaining 51% of LV General Insurance up to £ 578 million and to also acquire Legal & General's general insurance business at a discounted price. £ 242 million label.

The agreements come as Allianz turns more and more towards acquisitions and that the President and CEO, Oliver Bäte, has made general insurance – also known as non-life insurance. .

Allianz said the agreements announced Friday would make it the second largest general insurer in the UK with a 9% market share. Niran Peiris, Allianz board member, said the two deals "reflect our future commitment to the UK market".

They come after Allianz acquired an initial 49% stake in LV's property and casualty business in 2017 in a £ 713 million contract, making it the third largest player in the UK market.

Jonny Urwin, an badyst at UBS, said that Allianz 's increased presence in the UK was "bad news" for the country' s non – life insurers.

"We think it's the last thing in the UK [property and casualty] insurers needed, in a highly competitive market, pressure on British car insurance margins, "he said. "From Allianz's point of view, we are questioning the broader appeal of a move to the UK market, given the strong competition. That said, it fits in with the strategy. "

The L & G deal follows the revelation last month, the companies were in exclusive talks. The base price of £ 242 million will be supplemented by unspecified additional payments. . . current trade agreements, "was consistent with what badysts had predicted.The unit, which sells home, travel and pet insurance to consumers, has been on sale for several months.

"It's a good result for all parties involved. The acquisition of a high-quality business with 2 million customers and LV = General Insurance is a solid result, "said Jon Dye, General Manager of the British company Allianz.

Nigel Wilson, managing director of L & G, said the sale was "the right decision for our customers and our shareholders". Last year, the unit generated gross written premiums of £ 410m, but profits went from £ 37m to zero.

L & G has sought to unload non-core badets from its portfolio and in recent years has sold its savings business – Mature Savings, Cofunds, Suffolk Life and its international savings activities in Ireland, Egypt and other countries. in Germany – as well as its international insurance activities in the Netherlands, France and India.

Allianz said the two deals should be finalized in the second half of 2019. The L & G transaction is subject to regulatory approvals.