ALLIANZ COMPLETES DEAL FOR 49% LV STAKE

Allianz has completed the acquisition of a 49% stake in the UK general insurance business of Liverpool Victoria Friendly Society. The second stage of the deal will take place in 2019, when Allianz will pay an additional £213m for a further 20.9% stake in the company. The agreed forward price is based on a valuation of just over £1bn for the business. LV has an option under which it can sell all or part of its remaining shares to Allianz at any time. Allianz announced it was to acquire a 49% stake in UK-based insurance mutual LV for £500m last August. Speaking on an earnings call at the time, Allianz’s chief financial officer, Dieter Wemmer, said the deal would operate as a “joint venture”, with the transfer of LV’s commercial insurance book for Allianz’s personal home and motor insurer’s renewal rights. Annual premium income for the company will be £1.7bn.