Zurich sells UK workplace pensions and savings business

Zurich Insurance said that it is selling its UK workplace pensions and savings business with assets under administration of more than £15 billion and around 500,000 customers to Lloyds banking group (LBG).

The transaction will enhance Scottish Widows which is part of LBG and manages more than £124 billion of funds of which £35 billion is workplace pensions business.

LBG is targeting growth and is accelerating the development of its financial planning and retirement business.

As part of the transaction around 200 Zurich employees - including key management, relationship managers, technical experts and operations staff, located primarily in Cheltenham - are expected to transfer to LBG under a TUPE arrangement.

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, according to a statement.

The transaction will see Zurich receive exclusive distribution rights for group life protection to certain corporate clients of LBG’s commercial banking services.

Tulsi Naidu, CEO of Zurich UK, said: “We see today’s announcement as a very positive step forward for our business. We are simplifying our organisation and focusing on markets where we have strong assets and can best serve our customers and distributors. Our UK life and savings strategy is simple – to establish market leading positions in retail wealth, and retail and corporate protection, while growing our new corporate longevity and de-risking business.

“This new exclusive deal with Lloyds Banking Group broadens our corporate protection distribution footprint. To support our other ambitious growth plans, we are also investing in a new multi-million pound retail protection platform and enhancing the range of products on our retail wealth platform.”

The transaction is expected to partially close in the first quarter of 2018, with subsequent completion and transfer of assets following the required regulatory and legal approvals.

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