Legal and General have unveiled fresh plans to buy out the life insurance and unit trust business of one of their rivals, Nationwide Building Society .
According to business reports, Legal and General will secure the rights to distribute their products throughout the 860 UK branches operated by Nationwide. For the privilege, L&G will pay the building society 285 million pounds. The business as 3.5 billion pounds worth of assets and 19 billion pounds worth of protection.
The executive director of Nationwide, Stuart Bernau, said Nationwide will focus on distribution. He reported: "As a result of that, we started to consider who would be the best strategic partner for us, and after an extensive search, Legal and General came out on top."
As part of the deal, L&G will receive 270 staff based in Swindon, and will integrate new IT systems and training. L&G will then grow the business organically. Shares in the life assurance area of business closed high.




