The ALLIANZ and LV= joint venture will create third largest personal insurer in the UK market
ALLIANZ Group and LIVERPOOL Victoria Friendly Society (LV=) have agreed to launch a joint venture and a longer-term strategic partnership in the UK, thus creating the third largest personal insurance company in the market.
The announced operation will result in a general insurance business with over 6 million customers and GWP in excess of GBP 1.7 billion.
Under the terms of the joint venture ALLIANZ will initially pay GBP 500 million for a 49% stake in LV='s General Insurance businesses.
The first stage of the transaction is expected to close during the second half of 2017.
The second stage of the transaction will take place in 2019 and will see ALLIANZ pay GBP 213 million for a further 20.9% stake in LV= GI through an agreed, forward purchase based on a total valuation of GBP 1.020 billion for 100% of LV= GI.
LV= has a put option under which it can sell all or part of its remaining shares to ALLIANZ.
The transaction is subject to regulatory approvals.
Author: Vlad BOLDIJAR
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