Lloyds Sells German Life Insurer Heidelberger for $403 Million

Lloyds Banking Group Plc (LLOY), the U.K.’s largest mortgage provider, agreed to sell its German life insurance business, Heidelberger Lebensversicherung AG, to Cinven Partners LLP and Hannover Re.

Cinven and Hannover Re will pay about 300 million euros ($403 million) in cash, London-based Lloyds said in a statement today. The bank will book a loss of about 330 million pounds ($517 million) from the sale.

Lloyds Chief Executive Officer Antonio Horta-Osorio is shrinking assets and cutting costs as he prepares for the government to start reducing its stake in the lender after it was bailed out during the financial crisis.

“The sale is in line with the group’s strategy of rationalizing its international presence and ensuring value for shareholders,” Lloyds said in the statement.

Heidelberger Leben has 600,000 policies and 5.2 billion euros of assets at Dec. 31 and is based in Heidelberg, Germany, Cinven said in a separate statement today.

Separately, Lloyds said it agreed to sell a portfolio of leveraged loans to a unit of Goldman Sachs Group Inc. for 254 million pounds.

-- Editors: Edward Evans, Dylan Griffiths

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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