Lloyds Banking Group had prepared to exit the overseas market through the sale of its German life insurance business, Heidelberger Leben. The sale is expected to gain EUR400 million with Hannover RE as its prospected buyer. The move of the British state-backed bank was to focus more on lending in the country. This was according to sources familiar with matter who asked not to be named as discussions were held private in nature.
The source also said that the sale of Lloyds' German insurance business could be announced early this week. The sale follows the disposals of the bank's USD5 billion US mortgage book, international private banking business and Spanish banking operations. The government has also announced sale of its 39% stake in Lloyds Banking Group. The stake was acquired during the financial crisis of 2008 after shares pitched above the breakeven price.
The life insurance business was put up for sale in 2011, but struggled to find a buyer in the last two years. It was reported that Heidelberger Leben had an insurance-specific valuation measure of EUR1 billion.
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