12 October, 2017
Lloyds Banking Group is to buy Zurich's United Kingdom workplace pensions and savings business in a deal that is expected to partially complete in the first quarter of next year.
Scottish Widows has more than 124 billion pounds of funds, of which 35 billion pounds are in workplace pensions. Zurich's United Kingdom workplace pensions and savings business manages GBP19 billion in assets under administration.
The Zurich Corporate Savings proposition will broaden Scottish Widows' participation in the large pension scheme sector, with master trust and group self-invested personal pension (GSIPP) solutions.
Lloyds said the transaction is in line with its "targeted growth strategy and accelerates the development of its financial planning and retirement business". It will also provide a flexible investment capability to support advisers to create bespoke client investments and access assets not previously available via Scottish Widows.
The deal "is a clear signal of Lloyds Banking Group's commitment to the financial planning and retirement segment", said Antonio Lorenzo, Lloyds' director of insurance and wealth and chief executive of its life insurance business Scottish Widows.
The deal will see Zurich's 500,000 corporate clients join Lloyds' pension arm Scottish Widows.
Tulsi Naidu, chief executive of Zurich in the United Kingdom, said the sale of the corportate business was part of a "simplification" of its business.
"This new exclusive deal with LBG broadens our corporate protection distribution footprint".
As part of the deal around 200 Zurich staff largely based in Cheltenham will move to Lloyds Banking Group.
The Zurich tie-up is expected to partially close early next year, with full completion to follow once regulators give it approval.
