L&G plots £300m sale of house and contents insurance coverage arm


Authorized & Normal is plotting the sale of its normal insurance coverage operations in a transfer that would spur additional consolidation within the UK marketplace for house and contents cowl.

Sky Information has learnt that L&G’s chief govt, Nigel Wilson, has referred to as in funding bankers from Fenchurch Advisory Companions to supervise a sale of the enterprise, three years after a earlier try to dump it was deserted.

An public sale of Britain’s sixth-largest normal insurer, which trails the likes of Aviva, Direct Line and RSA in its house market, might generate a price ticket north of £300m, Metropolis sources mentioned on Wednesday.

Potential patrons have already been alerted to the chance to amass the L&G unit, they added.

In addition to house and contents cowl, the overall insurance coverage enterprise additionally has a small presence within the pet market following its acquisition in October 2017 of Buddies Enterprises.

The L&G normal insurance coverage arm recorded a £37m working revenue in 2017, down 29% on the 12 months earlier than, a efficiency largely dictated by higher-than-expected non-weather-related family claims.

Normal insurance coverage represents a tiny a part of L&G’s enterprise, which has advanced beneath Mr Wilson’s stewardship right into a diversified group with a presence in sectors reminiscent of housebuilding, infrastructure, pensions threat switch buyouts and concrete regeneration.

It additionally has an enormous asset administration operation, Authorized & Normal Funding Administration, which is in the course of a search to switch Mark Zinkula, its chief govt.

Mr Wilson, who took over on the helm of the group in 2012, has sought to re-engineer L&G as a monetary companies firm targeted on ‘inclusive capitalism’.

He has since offered plenty of divisions, overseeing robust progress in returns to shareholders.

L&G now has a market worth of £13.6bn.

A spokesman for L&G declined to remark.