Lloyds Banking Group has acquired Zurich's United Kingdom workplace pensions and savings business, which it said would accelerate the development of its adviser-based offering.
Antonio Lorenzo, Lloyds Banking Group director for insurance and wealth and chief executive of Scottish Widows, described the move as "a clear signal" of Lloyds' commitment to the financial planning and retirement sector.
Lloyds said it planned to boost subsidiary Scottish Widows' workplace savings platform.
Scottish Widows presently has £124bn AUM, of which £35bn is workplace pensions business, so this represents growth of up to around a half in one stroke.
It will see Zurich gain exclusive distribution rights for group life protection to certain corporate clients of Lloyds' commercial banking services.
He warned that a charge cap on these schemes illustrates the wider fee pressure on fund management, which means there is strength in numbers for the likes of Scottish Widows and Zurich, not least due to the increasing regulation faced by financial services firms.
The acquisition will also allow existing Scottish Widows workplace pension clients to access "assets not previously available via Scottish Widows". We are simplifying our organisation and focusing on markets where we have strong assets and can best serve our customers and distributors.
As part of the deal, around 200 Zurich employees, mainly based in Cheltenham, Gloucestershire, are expected to transfer to Lloyds.
Lloyds said it expects to partially close the deal in the first quarter of 2018, with the remained completions and transfers of assets staged over the following months. Our UK life and savings strategy is simple - to establish market leading positions in retail wealth, and retail and corporate protection, while growing our new corporate longevity and de-risking business. Lloyds has not disclosed the financials of the deal.