Lloyds sells off German life insurance business

clock

Lloyds Banking Group has signed an agreement to sell its German life insurance business Heidelberger Leben for a cash consideration of around €300 million, as it looks to meet regulatory capital demands.

The insurer will be sold to a joint venture company owned by Cinven Partners LLP and Hannover Rück SE for approximately £250 million at current exchange rates.

Heidelberger Leben is a specialist provider of unit-linked pension, investment and life assurance products in Germany.

The senior management employed by Heidelberger Leben will move with the business on completion of the sale.

The business will continue to service the Group's policies in Germany and Austria written under the Clerical Medical brand, under a long-term administration agreement.

The gross assets subject to the transaction are £7.2 billion, which are predominantly policyholder assets. In the year to 31 December 2012 the business reported a statutory loss of £38 million.

Lloyds revealed the sale is expected to lead to a loss on disposal of approximately £330 million in the Group's accounts but, combined with the sale of other assets, is currently expected to result in a benefit to the Group of approximately £0.4 billion upon completion. 

The cash proceeds from the sale will be used for general corporate purposes.

The sale is in line with the Group's strategy of rationalising its international presence and ensuring value for shareholders, it also said.

The transaction is subject to regulatory approval and is expected to complete in early 2014.

More on PMI

Five facts about physio from Vitality PMI claims data
PMI

Five facts about physio from Vitality PMI claims data

With demand for primary care rising, here are five facts about physio based on private medical insurance (PMI) claims data

Vitality
clock 04 August 2022 • 3 min read
Dr Katie Tryon, director of health strategy for Vitality
PMI

Dr Katie Tryon: Why prevention is better than claim

We sat down with Dr Katie Tryon, director of health strategy for Vitality, to hear why prevention is playing such a prominent role within private medical insurance (PMI)

Vitality
clock 25 July 2022 • 5 min read
Kirsten Randerson
PMI

Kirsten's Story: Treating the person, not just the condition

After being diagnosed with cervical cancer, Kirsten was holistically supported before, during and after treatment by her health insurer. She has since been given the all-clear.

Vitality
clock 12 July 2022 • 3 min read

Highlights

FCA gives three-month Consumer Duty extension for advisers

FCA gives three-month Consumer Duty extension for advisers

Deadline of 31 July 2023

Hemma Visavadia
clock 27 July 2022 • 5 min read
Meet the firm turning professional athletes into protection advisers

Meet the firm turning professional athletes into protection advisers

"You're only ever as good as your last game, but your next game could be your last"

Hemma Visavadia
clock 25 July 2022 • 5 min read
The COVER Review July 2022: Protection & Financial Education, IPAW 2022 and Reviewing 2022 So Far

The COVER Review July 2022: Protection & Financial Education, IPAW 2022 and Reviewing 2022 So Far

Now available for members to watch

John Brazier
clock 20 July 2022 • 1 min read