Allianz LV= Joint Venture: Transaction completed
Posted on: 29 December 2017
As you will no doubt be aware, Allianz and LV= are embarking upon a strategic partnership in the UK to trade car, van and home insurance. We are pleased to confirm that this partnership has been officially signed-off following regulatory approval from the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA). As part of the deal, Allianz’s personal home and motor lines will transfer to LV= and LV='s commercial lines business will transfer to Allianz.
Here’s a reminder of the deal:
- The creation of a joint venture under the LV= brand name in the UK personal insurance market which will become the UK’s third largest personal insurer.
- It is proposed that the new long-term joint venture will acquire Allianz’s personal home and motor insurance renewal rights, while Allianz will acquire LV=’s commercial insurance renewal rights.
- The first stage of the transaction, which has now completed, means Allianz holds a 49% stake in the joint venture and LV= a 51% stake.
- The second stage of the transaction will take place in 2019 and will see Allianz increase its stake to 69.9%.
Click below to view a video from Mike Crane and myself where we talk more about the deal and what it means for brokers.
What are the next steps?
Until now, Allianz and LV= have continued to trade separately as competitors. Now that sign-off has been achieved we are able to work closely together on the detailed roadmap. It is anticipated that around mid-2018, Allianz’s car, van and home business will start to transfer into the Joint Venture and the LV= commercial business will move to Allianz UK. We will share these plans with our broking community in due course.
What should brokers do?
Brokers should continue to trade with Allianz and LV= in the usual manner. Please do look out for future communications from both parties as we continue to share information with you on this partnership.