Allianz in talks over acquisition of Legal & General insurance unit

Allianz is in advanced talks to buy Legal & General’s home insurance business, in a deal that could be worth more than £300 million.

L&G put the unit up for sale last year, three years after a previous attempt to auction it off was halted.

According to Sky News, German insurance giant Allianz is now in exclusive talks to acquire the business, with a transaction thought to be imminent.

L&G’s general insurance arm is Britain’s sixth-largest general insurer and is estimated to be worth around £300 million.

It provides home and contents cover as well as some pet insurance.

Adding the business to its portfolio would make Allianz a larger presence on the UK’s insurance market.

It follows the company’s 2017 deal for a joint venture with LV=, creating the third-biggest personal insurer in the UK.

Meanwhile, L&G has been growing under the leadership of chief executive Nigel Wilson, who took the reins in 2012.

Last month it became the UK’s first £1 trillion investment manager following a spate of infrastructure deals last year.

Operating profit in the group’s general insurance unit decreased to zero in 2018, compared with £37 million the previous year.

This was partly due to claims relating to cold weather early last year and a surge in subsidence claims due to the hot weather.