Allianz has completed the acquisition of 49% stake in LV=’s UK General Insurance businesses.
The move completes the first stage in the creation of the companies' joint venture and strategic partnership.
Total consideration at the initial stage of the transaction is £500m.
The transaction helps in creating a general insurance business which has more than 6 million customer and gross premiums written more than £1.7bn.
It also allows for Allianz and LV= to take a leading role in the growing retail sector in the UK by creating a strong, customer-centric insurer in the markets of personal home and motor insurance markets.
In the second stage of the transaction, which will take place next year, Allianz will pay another £213m to buy a further 20.9% stake in LV=GI through a forward purchase based on a total valuation of £1.02bn for 100% stake in LV=GI.
In December, a consortium consisting of Allianz Group, Macquarie Infrastructure and Real Assets (MIRA) and Valtion Eläkerahasto (VER), the State Pension Fund of Finland, has signed an agreement to acquire Elenia,
Elenia is the second largest distribution system operator in Finland and Elenia Lämpö is the country’s ninth largest district heating network.
In November, the company opened a new branch office in Beijing, China to strengthen its presence in the country. The China Insurance Regulatory Commission (CIRC) has given Allianz licence for a full branch.
The company expects to provide its suite of commercial and consumer property and casualty (P&C) solutions to customers in Beijing, including travel, personal accident, health and motor insurance, as well as liability, marine, construction, energy, financial lines and trade credit.
Image: Allianz Headquarters in Munich. Photo: Courtesy of Allianz.