LV=/Allianz deal – job losses revealed

The LV=/Allianz joint venture will lead to a net loss of 280 jobs across the two companies, it was announced today.

A total of 400 positions will be put at risk at LV= and Allianz, while the transfer of businesses will give rise to 120 new positions.

The transfer of businesses between LV= and Allianz will start in the second half of this year, with the process running through until the beginning of 2020, the companies announced.

Brokers will be informed of the details of the transfers from today, they said.

Last August, the companies announced a joint venture under which Allianz’s personal home and motor portfolios will transfer to LV=GI, the new joint venture 49% owned by Allianz and 51% owned by LV=. Moving the other way, LV=’s commercial portfolios will transfer to Allianz.

At LV=GI, around 260 roles, which are currently held by employees who work in the commercial broker and commercial claims teams, will be put at risk of redundancy, subject to consultation. The company said, however, that in order to manage the additional incoming personal lines business, around 60 new roles will be created at LV=GI which will mainly be based in Croydon.

At Allianz, 140 people working on or supporting personal motor and home business will be put at risk of redundancy, subject to consultation. The roles are primarily based at Allianz’s Guildford and Bristol offices and any redundancies will be phased from the third quarter of 2018 to the first quarter of 2020 in line with the business transfer and run-off programmes.

Allianz’s small business team in Maidstone will see the creation of 60 new roles to manage the commercial business transferring across from LV=GI.

The companies said that employees have been made aware of these changes today and consultations will begin shortly. Where possible, suitable redeployment opportunities will be identified.

Mike Crane, director of broker at LV=, said: “It’s never easy making decisions such as these. We understand that the changes we’re proposing will be difficult for some which is why we’re working extremely closely with our people to make sure they get the support they need. We’re also taking the time to speak with our brokers to ensure they fully understand the changes and know the steps we’ll be taking to ensure a smooth transition of their business.

“However, while this news will be difficult for some, we’re obviously looking forward to growing our presence in the personal lines market. We’re committed to maintaining our high standards of service and, working with our brokers, we’re keen to explore new opportunities.”

Simon McGinn, general manager of Allianz added: “These are difficult decisions but the changes will maximise the opportunity presented by our partnership with LV=. They’re part of our clear strategy for our commercial broker business to build a strong, sustainable platform from which we can deliver for our customers and achieve our profitable growth objective. Any changes will be phased to ensure that we maintain a high quality of service to our brokers.”