LV= GI, which is part of Germany-based Allianz Group, said that the proposed restructuring will be carried out over the next 2.5 years
UK-based LV= General Insurance (LV= GI) is embarking on a restructuring programme aimed at operating more efficiently and to position itself for the future, a move that is expected to impact nearly 600 jobs.
The personal lines insurer, which is part of Germany-based Allianz Group, said that the proposed restructuring will be carried out over the next 2.5 years and any job cuts will be phased during the time period. The company, currently, has a workforce of around 4,300 people.
In January 2020, Allianz acquired 100% of the general insurance business of Legal & General (L&G GI) for £242m. The acquired business is now being proposed to be integrated fully into LV= GI.
LV= GI said that changes are also being proposed for its existing claims division. This is for making sure that there is a larger focus on customer service and technical capabilities.
The UK personal lines insurer said that the changes are expected to lead to a reduction in the office space in Ipswich in England where employees from the claims unit operate.
It further said that by the implementation of the proposed changes, the service it offers to customers can be strengthened, while building upon its track record of giving them award-winning products and services.
The insurer said that it has informed its employees about the changes and wherever possible will try to minimise redundancies by finding appropriate redeployment opportunities and also through natural attrition.
LV= GI CEO comments on the restructuring and the potential job cuts
LV= GI CEO Steve Treloar said: “It’s never easy making these decisions and we understand that the changes we’re proposing will be difficult for some, which is why we’re working extremely closely with our people to make sure they get all the support they need.
“It’s also important to reiterate that these changes will take place over the next 2.5 years and we’re hoping to minimise redundancies.
“However, while this news is undoubtedly difficult for some, we’re making these changes because we recognise that in order for us to thrive as a business in future we need to be set up in the best possible way and in making these changes we can ensure we achieve that.”
LV= GI is said to cater to more than seven million customers across the UK with car, home, pet, travel, home emergency, and landlord breakdown insurance solutions.
In January 2020, Allianz took full ownership of the personal lines insurer by acquiring the remaining 51% stake from Liverpool Victoria Friendly Society (LVFS) for £1bn.