A&O has advised Allianz Group on its joint venture with Liverpool Victoria Friendly Society to create the UK’s third largest personal insurer with over GBP1.7 billion annual premium income. The joint venture will be under the LV= brand name in the UK personal insurance market.

The transaction will see LV= will receive GBP500 million from Allianz in exchange for a 49% stake in LV=’s General Insurance businesses. The new, long-term joint venture will acquire Allianz’s personal home and motor insurer’s renewal rights while Allianz will obtain LV= GI’s commercial insurer’s renewal rights. 

The first stage of the transaction is expected to close during the second half of 2017. The second stage of the transaction will take place in 2019 and will see Allianz pay GBP213 million for a further 20.9% stake in LV= GI through an agreed, forward purchase based on a total valuation of GBP1.020 billion for 100%  of LV= GI.

The A&O team was led by Corporate partner Hans Diekmann in Dusseldorf, with Corporate partner Philip Jarvis in London and senior associate Claire Coppel.