View more on these topics

Lloyds to acquire Zurich’s UK workplace business

BusinesswomanLloyds says the deal is a signal of its commitment to the financial planning and retirement sector

Lloyds Banking Group is to buy Zurich’s UK workplace pensions and savings business in a deal that is expected to partially complete in the first quarter of next year.

The Zurich business has more than £15bn assets under administration and around 500,000 customers.

Scottish Widows already manages more than £124bn of funds of which £35bn is workplace pensions business.

According to data from Platforum, combined, Scottish Widows and Zurich would be the third largest workplace savings provider in the UK.

Data published in Platforum’s February Workplace Savings Guide show that based on third quarter 2016 assets under advice figures, Scottish Widows and Zurich would have a combined £47.7bn AUA compared to Legal & General at £56.9bn and Aviva at £55bn. 

The deal will see Zurich get exclusive distribution rights for group life protection to certain corporate clients of LBG’s commercial banking business.

Zurich Corporate Savings will broaden Scottish Widows’ offering in the large pension scheme sector with master trust and group self-invested personal pension solutions.

Around 200 Zurich staff will move to Lloyds as part of the deal.

Lloyds says the acquisition “accelerates the development” of its financial planning and retirement business.

Lloyds Banking Group director and Scottish Widows insurance and wealth chief executive Antonio Lorenzo says: “The acquisition of Zurich Corporate Savings 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.”

Lorenzo adds: “The greater proposition choice created through this acquisition will help us meet adviser and customer demands and ensure we continue to evolve our service proposition so that we are easy to do business with.”

Zurich UK chief executive Tulsi Naidu says: “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.”

Naidu adds: “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.”



Zurich to cut 240 jobs in UK

Zurich is set to cut 240 jobs in the UK as it looks to streamline its business lines. Back office and non-market facing areas are set to take the brunt of the cuts, including areas such as finance, operations and marketing. The provider currently separates these functions across life and general insurance, with different employees working […]


Scottish Widows signs new protection underwriting deal

Scottish Widows is the latest protection provider to offer partially underwritten quotes through The Exchange, Iress’ online comparison quote and transaction portal. Products available through Scottish Widows Protect, the company’s intermediary protection proposition, will be added to the portal. Providers on Iress’ enhanced underwriting service now include Scottish Widows Protect, AIG Life, Aegon, Aviva and […]

Standard Life and Scottish Widows complete bulk DC transfer

The first automated transfers between occupational defined contribution schemes through Origo’s new transfers service has taken place, moving 305 members between Standard Life and Scottish Widows in around five days. Origo says the new automated bulk transfer process, operated through its Options Transfers service, has brought down to a number of days an operation that […]

Global energy: positioning for a recovery in the oil price Š

Richard Hulf explains how he and John Dodd have positioned the Artemis Global Energy Fund and where they are finding opportunities. Richard explains how he and John are changing the complexion of the fund to focus on the most efficient oil producers. As he tells journalist Alexis Xydias, in this environment of lower prices, he […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment