LV finalises split with general insurance sale

LV finalises split with general insurance sale

LV has completed the split of its life arm and its general insurance arm, with the £1.1bn sale of the latter to Allianz.

The company had already sold a 49 per cent stake in its general insurance business to Allianz for £500m in December 2017 and on December 31 the remaining 51 per cent holding was sold to the German company. 

According to LV, it was paid a total £1.08bn for its general insurance arm.

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Allianz also bought L&G's GI business last year in a deal which cost £242m. 

Following completion of the deal, LV’s chairman, chief executive and non-executive directors will step down from the board of LV GI but will retain their seats on the board of LV.

The finalisation of the acquisition comes only a day before Mark Hartigan takes over as chief executive at LV, which is now just a life and pensions provider.

Mr Hartigan, who was most recently head of operations for Zurich's European arm, took over the helm at the provider from January on an initial 12 month contract, subject to regulatory approval.

He is replacing Richard Rowney, who announced last month he would be stepping down as LV’s chief executive to “seek new opportunities” after 13 years with the provider.

In March, LV started plans to convert to a mutual company limited by guarantee, saying its friendly society status restricted its development.

The change would result in LV being governed by the Companies Act, but it would not change the company’s mutual status. 

Similar to a friendly society a company limited by guarantee does not typically have shareholders or share capital. It has members whose personal liability is limited to the amount they agree to contribute towards the debts of the company.

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