Allianz Holdings plc, the U.K. subsidiary of Allianz SE, has completed its planned acquisition of the remaining 51 percent of 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 $1.429 billion. (See below for a breakdown of the deal total).

In a separate deal, Allianz Holdings announced it has completed the acquisition of 100 percent of the General Insurance division of Legal & General (L&G GI) for $320.8 million. This business is being combined with LV GIG, although the Legal & General brand will continue to be used in the U.K. general insurance market for up to three years, said Guildford, England-headquartered Allianz Holdings.

These deals were first announced on May 31, 2019.

The completion of these deals positions Allianz Holdings plc as the number two general insurer in the U.K., based on full year 2018 figures, the company said, noting that the combined businesses had a gross written premium income of over $5.3 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. He will report to Jon Dye, CEO of Allianz Holdings plc. Treloar, 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 CEO of L&G GI, subject to regulatory approval. He will continue to report to Steve Treloar and sit on the LV GIG executive committee as both CEO of L&G GI and managing director of LV GIG Broker.

“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,” said CEO Dye.

“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,” he 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,” said Treloar. “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.”

An Allianz representative broke down the £1.078 billion deal price tag as follows:

• Allianz paid £500 million for a 49 percent share of LV GIG in 2017
• At that time, Allianz agreed to pay £213 million for an additional 20.9 percent share, in 2019 (fixed price valuation)
• The 2017 deal also included a put option under which LVFS could sell all or part of its remaining shares to Allianz. This option has now been exercised at an agreed price of £365 million for the remaining 30.1 percent share.

Source: Allianz Holdings

*This story appeared previously in our sister publication Insurance Journal.