German insurance giant Allianz is holding exclusive negotiations to acquire general insurance business of the British life insurer Legal & General (L&G), Financial Times has reported.
The deal, which is part of German insurer’s plan to further bolster its footprint in the UK market, is expected to be announced in the coming weeks.
L&Gs general insurance unit, which offers home, travel and pet insurance to consumers, was separated from the company in 2018 and subsequently put up for sale.
The business is worth £240m ($313m), Financial Times reported quoting an analyst at investment bank Jefferies.
In March, Allianz chief financial officer Giulio Terzariol told the FT: “I like the retail [property and casualty insurance] business because it is very stable and tends to be more profitable.”
Allianz latest move follows acquisition of a 49% stake in LV’s general insurance business in a £713m deal, to set up the third-largest personal insurer in the UK.
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Additionally, the German insurer acquired 29.43% stake in the France-based trade credit insurer Euler Hermes for €1.5bn and boosted its total stake to 92.43%.
L&G has been offloading noncore businesses in a bid to focuses on life insurance, investment and asset management.
In 2017, the British life insurer offloaded its Mature Savings business to ReAssure, part of Swiss Re, for £650m.
When asked by Life Insurance International, Legal & General declinesd to issue a comment.