Lloyds announced in a statement today that it had entered into an agreement with Zurich to acquire its United Kingdom workplace pensions and savings business with assets under administration of £19 billion.
The lender said the acquisition of the business, which has £19bn in assets under administration and about 500,000 customers, will enhance its offering at Scottish Widows - its life assurance, pensions and investment arm.
In a written statement, Antonio Lorenzo, director of insurance and wealth at Lloyds and chief executive of Scottish Widows, said the announcement was a "clear signal" of the company's commitment to the retirement and financial planning market.
Scottish Widows presently has £124bn AUM, of which £35bn is workplace pensions business, so this represents growth of up to around a half in one stroke.
Zurich will also provide group life protection to some of Lloyds Banking Group's corporate clients as part of the deal. We are simplifying our organisation and focusing on markets where we have strong assets and can best serve our customers and distributors. 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.
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Around 200 Zurich employees, mainly based in Cheltenham, in the west of England, are expected to transfer to Lloyds.
Lloyds said it expects to partially close the deal in the first quarter of 2018, with the remained completions and transfers of assets staged over the following months.
He added: "The acquisition of Zurich's United Kingdom workplace pensions and savings business complements Scottish Widows' growth to date and provides us with an ideal opportunity to accelerate our goal to become a market leader in this important sector, for advisers and customers".
She added: "This new exclusive deal with Lloyds broadens our corporate protection distribution footprint".
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