The Allianz LV tie up will create an LV branded £1.7bn personal lines joint venture (JV) between the two insurers, which the companies say will be the UK’s third-largest personal lines player. Allianz’s personal lines business will shift to the new JV, while LV’s commercial book will transfer to Allianz. Flanagan said in a research note: “We view this as a highly ominous development for the incumbent UK personal and commercial lines players. “The JV will combine the virtues of LV’s branding, customer service and franchise with the strength of Allianz’s balance sheet, digital focus and technical pricing expertise. It effectively recapitalises LV for the Solvency II world, rejuvenates the LV’s non-life offering and provides Allianz with an enhanced foothold across UK personal and commercial non-life insurance.” “Hence, we see this deal as negative for the incumbent UK non-life insurers.”

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