"The LV= brand is as strong as ever and isn’t going anywhere; it’s recognised as one of the most recommended brands in the UK. Our focus is on growth and the future success it presents for our members."
Last week, Allianz told employees in its UK insurance arm that 650 jobs will be cut due to ‘difficult market conditions’. Media outlets have reported that jobs will be eliminated from Allianz’s commercial, speciality, and personal insurance business.
Earlier this year, it was announced that LV= General Insurance (LV=GI), acquired by Allianz in 2020, will leave the personal lines market to rebrand as Allianz UK.
This decision was classified as a ‘brand risk’ in the LV= Annual Report & Financial Statements for the year ended 31st December 2024, which includes its strategic report - signed by Ulf Lange, chief financial officer - on behalf of the board.
The report states, "Allianz UK has a conservative and controlled risk appetite that is aligned to achieving corporate objectives and meeting regulatory requirements.
"As a significant global financial services brand, the Company is exposed to the risk of negative media coverage and stakeholder perception, either as a result of external events, or as a result of its own activities, including the potential commercial impact of pivoting away from the LV= brand for personal lines business."
The "transition away from the LV=GI brand" was also cited as a risk in the mutual's Annual Report & Financial Statements for 2023.
In December 2017, Allianz acquired a 49% stake in LV=GI, securing a further 20.9% in 2019. As part of the transaction, LV= had a put option under which it could sell all or part of its remaining shares to Allianz at any time - the mutual sold the final 30.1% later that year.
At the time, Richard Rowney, CEO of LV=, said: "We have successfully grown the value of our GI business to more than £1bn, and this deal enables us to realise that value for the long-term benefit of our members as well as strengthening our overall capital position."
Allianz rebranded its existing digital motor insurance product and LV= Broker in 2024, before confirming that the LV= brand will be dropped in 2026.
Shortly after Allianz completed this acquisition, LV= announced the £530mn sale of its savings, retirement, and protection business to Bain Capital. When that fell through, LV= turned to Royal London for a possible deal between the two firms.
An LV= spokesperson told Protection Reporter, "The LV= brand is as strong as ever and isn’t going anywhere; it’s recognised as one of the most recommended brands in the UK. Our focus is on growth and the future success it presents for our members.
"LV= has a diverse, but specialised range of product offerings from equity release to smoothed managed funds, to protection. LV= is a life and pensions provider. Allianz owns the LV=GI business and licenses the LV= brand."
"We’re acting in response to shifting preferences towards digital, self-service customer support, and changing market dynamics in claims, particularly motor, where technology advancements have led to a reduction in the number of accidents on our roads.
"We’re investing in a multi-year transformation programme to become a simpler, digital-led, leaner business. Sadly, we have informed colleagues of the difficult decision to reduce the size of Allianz UK's GI workforce by the end of 2025," said Allianz’s spokesperson.
