Legal & General has sold their home insurance business to Allianz in a deal worth £242m.
The two insurance firms have been in exclusive discussions for months and Allianz are keen to expand their presence in the UK.
L&G said the insurance business is mainly made up of home insurance policies with gross written premiums in 2018 of £410m.
In 2017 Allianz bought a 49% stake in LV’s general insurance business for £713m making the insurance firm the third biggest in the market.
Chief executive Nigel Wilson said, “Selling the General Insurance business is the right decision for our customers and shareholders.
“We continue to focus on delivering against our strategy, allocating shareholders’ capital rigorously.”
Jon Dye, chief executive of Allianz UK said, “This is a good outcome for all the parties involved and acquiring a high-quality business with two million customers to combine with the LV= General Insurance business is a strong result.”