Business
Disposal
Disposal.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \nRNS Number : 7201A Legal & General Group Plc 31 May 2019 \n\nLegal & General to sell its General Insurance business to Allianz\n \n \nLegal & General Group Plc (\"Legal & General\") announces that it has agreed to sell its General Insurance (\"GI\") business to Allianz Holdings plc. The proposed transaction, which is subject to customary regulatory approvals, is expected to complete in the second half of 2019.\n \nThe financial consideration from the proposed sale consists of a base price of £242 million payable at completion and potential further payments over a three year period from ongoing commercial arrangements. The base price is commensurate with IFRS book value. The Group's Solvency II ratio is expected to increase by approximately 2% following completion of the transaction. The proceeds from the disposal will be reinvested in Legal & General's attractive and growing core businesses.\n \nThe GI business being sold comprises principally retail customers who hold household insurance policies. In 2018 gross written premiums were £410 million and operating profit was nil. \n \nLegal & General is confident that selling the GI business to one of the world's largest property and casualty insurers will mean that customers can trust they are in safe hands. \n \nThe sale by Legal & General of the GI business is the latest in a successful programme of disposals in recent years across the Group's non-core businesses, including its historic savings businesses (Mature Savings, Cofunds, Suffolk Life and its international savings businesses in Ireland, Egypt and Germany), its international insurance businesses in the Netherlands, France and India, and various other non-core businesses. These disposals have generated proceeds in excess of £1.5 billion. \n \n \n \nNigel Wilson, CEO of Legal & General said:\n \n\"Selling the General Insurance business is the right decision for our customers and shareholders. And I would like to take this opportunity to thank our GI colleagues for their contribution to Legal & General. \n \nWe continue to focus on delivering against our strategy, allocating shareholders' capital rigorously. We are market leaders in ten UK markets and have a growing presence in the USA and an emerging presence in Asia....