Lloyds Banking Group and Zurich have entered into an agreement for the acquisition of the latter’s UK workplace pensions and savings business.

Expected to partially close in the first quarter of next year, the deal is aimed at enhancing Scottish Widows’ current offering and is said to be in line with Lloyds Banking Group’s targeted growth strategy. The Zurich business being snapped up has assets under administration of £19 billion.

The bank said Scottish Widows manages over £124 billion of funds, with £35 billion being workplace pensions. It added that the acquisition will broaden Scottish Widows’ participation in the world of financial planning and retirement.

The transaction follows last month’s revelation that Lloyds Banking Group’s closed book operations were being outsourced from the insurance division to TCS (Tata Consultancy Services) Diligenta – a move criticised by trade union Unite.

Meanwhile Lloyds Banking Group director of insurance & wealth and Scottish Widows chief executive Antonio Lorenzo described the latest announcement as “a clear signal” of the bank’s commitment to the financial planning and retirement segment.

“The acquisition of Zurich’s UK workplace pensions and savings business 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,” he said.


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