Lloyds Bank is buying Zurich’s UK workplace pensions and savings business, with assets under management of £19 billion (€21 billion).
Zurich’s operations will be added to Lloyds’ Scottish Widows business, which currently manages more than £124 billion of funds of which £35 billion is workplace pensions business.
Laith Khalaf, senior analyst at Hargreaves Lansdown said the move underlined Lloyds’ commitment to the pensions market and scotched rumours that the bank is looking to sell off the Scottish Widows franchise.
He said: “This part of the business adds some diversification to the Lloyds stable without the risks inherent in the investment banking activities practiced by its peers.
“By comparison the workplace pensions business is sleepy, steady and sticky. The defined contribution market is also growing, thanks to the government’s automatic enrolment programme.
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