Legal & General sells general insurance arm to Allianz for £242m

Legal & General said it was selling its general insurance business to Allianz for a minimum £242m.

The business comprises principally retail customers who hold household insurance policies. In 2018 gross written premiums were £410m and operating profit was nil, Legal & General said in a statement.

It added that further potential payments could be made over a three year period from “ongoing commercial arrangements”.

The deal was expected to complete in the second half of 2019 and is the latest in a disposals programme across the group's non-core businesses which have generated more than £1.5bn.

The group's solvency II ratio was expected to increase by around 2% after the deal, with the proceeds reinvested in its core businesses.