LV= plans Teachers Assurance takeover

The deal will not include Teachers Assurance's unit trust business, which will be transferred to Threadneedle Investments. Threadneedle also has a strategic partnership with LV= for the management of assets on behalf of its member funds.

Teachers Assurance is a member-owned mutual friendly society, providing 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.

The Teachers Assurance transaction will add to LV='s existing customer and member base of 5.5 million. Teachers Assurance manages around £1 billion on behalf of its members and policyholders and offers a range of products including life and pensions, and home & buildings insurance.

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."