OREANDA-NEWS. Mutual insurance, retirement and investment group LV= has agreed terms with Teachers Provident Society, which trades as Teachers Assurance, to take over the majority of its business interests. The transaction is subject to regulatory and Teachers Assurance member approval and it is expected that the deal will complete in early 2016.

Teachers Assurance, like LV=, is a member-owned mutual friendly society. Formed in 1877, the company provides tailored financial products and services to the education profession. Teachers Assurance operates complementary business lines to LV= in life and pensions, savings and investments plus general insurance. It is based in Bournemouth, and employs circa 115 people.

LV= is the UK's largest friendly society and a leading insurance company. LV= manages ?10.3 billion of assets on behalf of its members and policyholders and offers a range of investment, insurance and retirement products. The company employs 6,000 people nationwide. The Teachers Assurance deal follows successful acquisitions of Highway Insurance (2008), Britannia Rescue and Tomorrow (both 2007). The transaction will be a transfer of engagements under the Friendly Societies Act.

The Teachers Assurance transaction will add to LV='s existing customer and member base of 5.5 million. Teachers Assurancemanages circa ?1 billion on behalf of its members and policyholders and offers a range of products including with-profits (40,000 policies), life and pensions (32,000 policies) and home & buildings insurance (13,000 policies).

The deal will not include Teachers Assurance's unit trust business (19,000 policies). Instead, Teachers Assurance has reached an agreement to transfer the business of those funds to Threadneedle Investments. Threadneedle is a leading UK-based investment business that manages ?92.6 billion on behalf of individuals, pension funds and institutions. Threadneedle also has a strategic partnership with LV= for the management of assets on behalf of its member funds. 

Mike Rogers, LV= group CEO, commented: "We believe Teachers Assurance offers good value to our members and is complementary to our existing business lines where we already have significant scale. This acquisition is further demonstration of our continued financial strength and will help with our strategic intention to continue to grow the life part of our business.

"LV= offers a wide range of good value financial products backed up by an excellent level of customer service meaning we are well placed for profitable growth. We already have plans to launch a financial advice service to the teaching profession following this deal.

"Teachers Assurance, like LV=, has its head office in Bournemouth and as a result we hope to be able to redeploy many Teachers Assurance employees into the wider LV= group when, subject to member and regulatory approval, it becomes part of LV= in early 2016.

"We expect the deal to be earnings and cash flow positive within 12 months of completion and the impact on surplus capital is not material. We will be working closely with the current executive team over the coming months to ensure a smooth handover."

As a result of the transaction Teachers Assurance members will become members of LV= and benefit from a wide range of member benefits including free legal advice, discounts, and a member support fund.

The Teachers Assurancemember vote is scheduled for 2015 and will be managed by Teachers Assurance and its current management team. An information pack will be sent to all Teachers Assurancemembers in advance, explaining the deal in more detail.

About LV=

LV= employs 6,000 people and serves over 5.5 million customers and members with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.