Insurers LV= and Allianz have revealed that as many as 400 jobs are at risk following Allianz’s takeover of 49% of LV’s general insurance business last year.
The two firms have today outlined plans to transfer their respective personal and commercial portfolios following the deal, which was originally announced last August.
Allianz’s personal home and motor portfolios will transfer to LV=GI, and LV=’s commercial portfolios will transfer to Allianz. The moves are expected to start in the second half of 2018, with on-going support required until the beginning of 2020.
As a result, around 260 roles at LV= GI – currently held by employees working in the commercial broker and commercial claims teams – and 140 roles in Allianz’s personal motor and home business will be put at risk of redundancy, subject to consultation, it was revealed.
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. An additional 60 new roles will also be created within Allianz’s small business team at Maidstone to manage the commercial business transferring across from LV= GI.
Employees have been made aware of these changes today, the firms said in a statement, adding that consultations will begin shortly and, where possible, suitable redeployment opportunities will be identified.
Mike Crane, director of broker at LV=, said it was “never easy” to make such decisions.
“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,” he said.
“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.
“Both companies will do their utmost to provide whatever support is needed to help colleagues find other employment opportunities, within Allianz and LV= wherever possible.”