LONDON--British state backed bank Lloyds Banking Group PLC
(LLOY.LN) Wednesday announced that it has signed an agreement to
sell its German life insurance business Heidelberger
Lebensversicherung AG (Heidelberger Leben) to a joint venture
company owned by Cinven Partners LLP and Hannover Ruck SE for 300
million euros (250 million pounds) in cash.
MAIN FACTS:
-Gross assets subject to the transaction are GBP7.2 billion,
which are predominantly policyholder assets.
-Sale of Heidelberger Leben is expected to lead to a loss on
disposal of GBP330 million in the Lloyds' accounts.
-Combined with the sale of other assets, Heidelberger Leben sale
is expected to benefit to the group's common equity tier 1 capital
of GBP0.4 billion upon completion, equivalent to a benefit of 13
basis points on a pro forma fully loaded CRD IV basis.
-Cash proceeds from the sale will be used for general corporate
purposes.
-Sale is subject to regulatory approval and is expected to
complete in early 2014.
-Heidelberger Leben is a provider of unit-linked pension,
investment and life assurance products in Germany.
-In the year to Dec. 31, 2012, Heidelberger Leben reported a
statutory loss of GBP38 million.
-Senior management employed by Heidelberger Leben will move with
the business on completion of the sale.
-Business will continue to service the Lloyds' policies in
Germany and Austria written under the Clerical Medical brand, under
a long-term administration agreement.
-Shares of Lloyds on Tuesday closed at 7380 pence, valuing the
company at GBP52.64 billion.
-Write to Tapan Panchal at tapan.panchal@wsj.com
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