Wednesday 12 December 2018 3:49 pm

Legal & General hires bankers to sell its general insurance business

Legal & General has appointed an investment bank to sell its general insurance arm.

According to Sky News, L&G has hired Fenchurch Advisory Partners to sell the business in a deal that could be valued at more than £300m.

L&G previously tried to dispose of its general insurance arm three years ago, but that attempt was shelved.

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.

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

Panmure Gordon analyst Barrie Corns said: "L&G has been decluttering its business during the last five years and we see this as a logical move given its emphasis on retirement and investments."

L&G’s general insurance business had gross written premiums of £369m in 2017, delivering an operating profit of £37m.

It the first half of 2018 it was hit by bad weather in the form of the Beast from the East which led to an operating loss of £6m.

L&G was contacted for comment.