UK banking giant Lloyds Banking Group has acquired the entire share capital of protection business Cavendish Online for a total consideration of £12m ($15m, €14m).
Cavendish provides hybrid solutions to consumers including guided and advised life insurance, critical illness and income protection services.
Lloyds said the M&A deal will help support Halifax, Lloyds Bank and Bank of Scotland’s client needs.
It added the firm will continue to provide mortgage-focused protection advice in its branches, as well as Scottish Widows-branded products via IFAs.
At completion, Cavendish will continue to operate as a separate company within Lloyds and become a wholly-owned subsidiary of Scottish Widows Group.
The protection business will also maintain its existing offices in Exeter and Fareham.
The acquisition is part of Lloyds’ plans to become a top-three protection provider by 2025.
Lack of cover
Antonio Lorenzo, chief executive of Scottish Widows and group director, insurance and wealth, at Lloyds Banking Group, said: “We have both the opportunity and the responsibility to improve our customers’ financial resilience. 60% of UK adults have no form of life cover and just 12% have cover if they fall critically ill.
“Our acquisition of Cavendish Online will enable us to help more of our customers at the times when we know they value advice.”
Rose St Louis, protection director at Lloyds Banking Group, added: “Protection can be a tricky conversation, often triggered by key events in peoples’ lives and many people value discussing their options with someone, to make sure they’ve got the right cover for their specific circumstances.
“The acquisition of Cavendish Online will enable us to provide advice and guidance to a broader range of customers, who are unlikely to access protection through an IFA, using the channel that best suits them and complements our existing mortgage focused in-branch service.”
The deal is expected to complete in Q4 2022.
