Lloyds bank sells German life insurance unit

21st August 2013, Comments 0 comments

Britain's state-rescued Lloyds Banking Group annonced two disposals on Wednesday as part of a programme to restructure the business, sell non-strategic assets and strengthen its capital.

The bank said it had agreed to sell its German life insurance division for around 300 million euros ($402 million).

"Lloyds Banking Group plc announces that it has signed an agreement to sell its German life insurance business Heidelberger Lebensversicherung AG to a joint venture company owned by Cinven Partners LLP and Hannover Rück SE, for a cash consideration of around 300 million euros," the bank said a statement.

It added: "The sale is in line with the group's strategy of rationalising its international presence and ensuring value for shareholders."

Heidelberger Leben is a specialist provider of unit-linked pension, investment and life assurance products in Germany.

The deal remains subject to regulatory approval and is expected to be completed in early 2014.

Lloyds also revealed that it had agreed to sell a portfolio of leveraged loans to Goldman Sachs subsidiary ELQ Investors II Limited for £254 million in cash.

Wednesday's announcements are part of the bank's programme to sell non-strategic assets and strengthen its capital levels.

In May, Lloyds sold US mortgage-backed securities for £3.3 billion, boosting its capital base in the process.

LBG is 39-percent owned by the British government after a state bailout in the wake of the 2008 global financial crisis.

© 2013 AFP

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