Lloyds Banking Group will take control of £15 billion of assets after agreeing to acquire Zurich UK’s pensions and savings business as it delves deeper into the retirement market.
The deal will see Lloyds’ Scottish Widows unit scoop up 500,000 customers in a move that “accelerates the development of its financial planning and retirement business”.
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.
In addition, 200 Zurich employees in Cheltenham are expected to transfer to Lloyds.
Antonio Lorenzo, chief executive at Scottish Widows, said: “Today’s announcement is a clear signal of Lloyds Banking Group’s commitment to the financial planning and retirement segment.
“The acquisition of Zurich Corporate Savings complements Scottish Widows’ growth to date and provides us with an ideal opportunity to accelerate our goal to become a market leader in this important sector for advisers and customers.”
Scottish Widows already manages more than £124 billion of funds, of which £35 billion is workplace pensions business.
Earlier this year, Lloyds finally returned to private hands nearly nine years after the Government bailed it out at the height of the financial crisis.