Monday 29 April 2019 1:52 pm

German insurer Allianz close to deal for L&G's general insurance business

German insurer Allianz is in advanced discussions to buy Legal & General’s (L&G) general insurance arm, which was put up for sale last year.

Allianz has fended off rivals, including Direct Line, and a deal is understood to be close, according to Sky News.

Read more: German insurance giant Allianz unveils record €11.5bn profit

The deal could value the division, which provides home and pet insurance, at up to £350m and would strengthen Allianz’s presence in the UK.

General insurance is only a small part of L&G’s wider business which also includes asset management and pensions.

Under chief executive Nigel Wilson L&G has moved to sell non-core assets.

Last year it sold its mature savings business to Swiss Re for £650m.

The general insurance division was put up for auction three years ago before being called off and the fresh sale is now being handled by Fenchurch Advisory Partners.

In 2017 Allianz formed a joint venture with LV to create the third largest personal insurer in the UK market.

Read more: Legal and General shares fall on dividend fears

The transaction saw Allianz pay £500m for a 49 per cent stake in LV’s general insurance businesses.

Allianz will also pay a further £213m this year for a further 20.9 per cent stake in the long term joint venture.