Lloyds strikes pensions and savings deal with Zurich

Marco Green
October 12, 2017

Lloyds Banking Group PLC said Thursday that it will acquire the United Kingdom workplace pensions and savings business of Swiss insurer Zurich Insurance Group Ltd, as part of the company's strategy to grow and expand the pensions business.

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

The bank, which returned to full private ownership in May after the Government sold the last of its stake, said the deal would boost its Scottish Widows division by adding £19bn in assets and 500,000 customers.

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.

The acquisition will also allow existing Scottish Widows workplace pension clients to access "assets not previously available via Scottish Widows".

The deal "is a clear signal of Lloyds Banking Group's commitment to the financial planning and retirement segment", said Antonio Lorenzo, Lloyds' director of insurance and wealth and chief executive of its life insurance business Scottish Widows.

Lloyds returned to private hands in May after the United Kingdom government sold its remaining shares in the bank it bailed out during the financial crisis.

Insurance giant Zurich will receive exclusive distribution rights to provide life protection to certain corporate clients of Lloyds' commercial banking arm as part of the tie-up. "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".

Around 200 Zurich employees, mainly based in Cheltenham, in the west of England, are expected to transfer to Lloyds.

Other reports by Click Lancashire

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