LV has agreed terms with Teachers Provident Society, which trades as Teachers Assurance, to take over the majority of the business.

The transaction will bring 5.5 million customers to LV=; it has £1bn AUM and has 32,000 life and pension policies, 40,000 policies with-profits and 13,000 home and buildings insurance policies.

Teachers Assurance is a member-owned mutual friendly society that employs around 115 people. It operates complementary business lines to LV= in life and pensions, savings and investments plus general insurance.

LV= 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.

Threadneedle, which has £92.6bn AUM from pension funds, individuals and institutions, has taken over Teachers Assurance’s unit trust business, which includes 19,000 policies.

LV= group CEO Mike Rogers said Teachers Assurance is “complementary” to the existing business and the acquisition helps with the “strategic intention” to grow the life part of the business.

“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,” he added.

The Teachers Assurance member vote is scheduled for 2015 and will be managed by Teachers Assurance and its current management team. The transaction is subject to regulatory and Teachers Assurance member approval and it is expected that the deal will complete in early 2016.

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