Can Home & Legacy's new products prove the doubters wrong?
This week, Home & Legacy launched its first new product since its acquisition by Allianz in 2006.
The product, the first of a number planned for the year, has been a long time coming (Allianz attributes the delay to developing Home & Legacy’s software platform) and is an important development in the business.
The purchase had surprised some sectors of the market who thought Allianz had overpaid for the company. It was rumoured to have paid nearly £60m, when some had suggested it was worth nearer £25m.
But Allianz insisted that it had not over-valued the business given the growth opportunities it presented.
When it acquired the business, Home & Legacy had business volumes of around £30m gross written premiums. At the time Allianz said it was looking to raise this to £100m.
The insurer’s plans were centred on using Home & Legacy as a distribution platform for its own product lines. Expanding the Home & Legacy product range from its core high net worth household product was vital. Products such as pet, equine, pleasure craft and classic cars were suggested as possible new lines.
While Home & Legacy’s original high net worth product was underwritten by a panel of insurers, the new one – a letting product – will see Allianz as the sole insurer for the buildings cover. (It is curious that Allianz Legal Protection does not underwrite the legal expenses part of the cover).
It is not clear how much business Home & Legacy is currently writing, but Allianz has quite a challenge ahead if it is to reach its goal of tripling the size of the business.
The success of the new product and its forthcoming siblings will be closely watched.
