As part of their strategic partnership, originally announced on 4 August 2017, LV= and Allianz are today outlining the plans to transfer their respective personal and commercial portfolios. Allianz’s personal home and motor portfolios will transfer to LV=GI, the joint venture 49% owned by Allianz, and LV=’s commercial portfolios will transfer to Allianz.
It’s anticipated that the transfers will start in the second half of 2018, with on-going support required through until the beginning of 2020. Brokers and partners are being contacted from today to notify them of the transitional plans.
As a result of the plans to transfer the Personal and Commercial portfolios, a number of organisational changes are being proposed:
- At LV=GI, around 260 roles, which are currently held by employees who work in the Commercial Broker and Commercial Claims teams, will be put at potential risk of redundancy, subject to consultation.
- In order to manage the additional incoming personal lines business, around 60 new roles will be created at LV=GI which will mainly be based in Croydon.
- At Allianz, 140 people working on or supporting personal motor and home business will be put at risk of redundancy, subject to consultation. The roles are primarily based at Allianz’s Guildford and Bristol offices and any redundancies will be phased from Q3 2018 to Q1 2020 in line with the business transfer and run-off programmes.
- 60 new roles will be created within Allianz’s small business team at Maidstone to manage the commercial business transferring across from LV=GI.
Employees have been made aware of these changes today and consultations will begin shortly. Where possible, suitable redeployment opportunities will be identified.
Mike Crane, director of broker at LV=, said: “It’s never easy making decisions such as these. 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 the support they need. We’re also taking the time to speak with our brokers to ensure they fully understand the changes and know the steps we’ll be taking to ensure a smooth transition of their business.
“However, while this news will be difficult for some, we’re obviously looking forward to growing our presence in the personal lines market. We’re committed to maintaining our high standards of service and, working with our brokers, we’re keen to explore new opportunities.”
Simon McGinn, general manager of Allianz added: “These are difficult decisions but the changes will maximise the opportunity presented by our partnership with LV=.They’re part of our clear strategy for our Commercial broker business to build a strong, sustainable platform from which we can deliver for our customers and achieve our profitable growth objective.Any changes will be phased to ensure that we maintain a high quality of service to our brokers.
“Both companies will do their utmost to provide whatever support is needed to help colleagues find other employment opportunities, within Allianz and LV= wherever possible.”
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LV= employs over 5,500 people and serves over 5.8 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual. We are currently the UK’s joint number one brand for Insurance and Investments, according to the 2017 YouGov Brand Index Buzz Rankings. We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations including ASDA and Nationwide Building Society.
The information contained in this press release relates to Allianz Insurance plc. Allianz Insurance plc is one of the largest general insurers in the UK and part of the Allianz Group.
The Allianz Group is one of the world's leading insurers and asset managers with more than 86 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing over 650 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold a leading position in the Dow Jones Sustainability Index. In 2016, over 140,000 employees in more than 70 countries achieved total revenue of 122 billion euros and an operating profit of 11 billion euros for the group.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements.
Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the euro/US-dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
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