HBOS unit Clerical Medical has agreed to acquire the life insurance unit of German financial services firm MLP.
Clerical Medical said today it was buying MLP Life for €270 million in cash, adding further payments of up to €40 million based on sales volumes and €15 million for premium increases within the existing book.
The deal will help Luxembourg-based Clerical Medical International expand its 6 per cent share of new business in Germany's life insurance market, an area it said had favourable demographic and regulatory trends.
MLP Life has 250,000 customers, with 600,000 policies in force.
MLP Chief Executive Uwe Schroeder-Wildberg said the deal completed a strategic refocusing of the firm towards distribution as it also announced the sale of its property insurance arm MLP Versicherung to German peer Gothaer Group for €14 million.
HBOS shares were unchanged at 842 pence shortly after the market opened, while MLP stock was trading 1.7 per cent higher at €15.75.