Upon closing of the transaction, Cavendish Online will operate as an independent company within the Group and will continue to provide its insurance broker services through existing channels
Lloyds Banking Group headquarters in London, UK. (Credit: Carcharoth/Wikipedia)
UK-based financial services provider Lloyds Banking Group has unveiled its plans to acquire Cavendish Online for a total consideration of £12m.
Established in 2000, Cavendish Online is an online fee-based low-cost broker protection business.
It provides hybrid direct-to-consumer, guided and advised life insurance, critical illness and income protection services, along with simple, affordable and accessible protection products.
Cavendish Online director John Nelmes said: “Our goal has always been to relentlessly pursue customers’ best interests through the provision of simple, affordable and accessible protection products and advice.
“That’s why we are looking forward to working together with Lloyds Banking Group to grow our business and ultimately help protect more UK families.”
In February this year, Lloyds announced its plans to strengthen its consumer relationships and aims to become a large-scale protection provider by 2025.
With the acquisition of Cavendish Online, Lloyds is enabled to address the protection needs of Halifax, Lloyds Bank and Bank of Scotland customers.
The transaction is expected to be completed in the fourth quarter of 2022, subject to receipt of regulatory approvals.
Upon closing, Cavendish Online will operate as an independent company within the Group and will continue to provide its insurance broker services through existing channels.
Lloyds Banking Group will continue its mortgage-focused protection advice in branches, along with Scottish Widows-branded protection products offering.
Lloyds Banking Group protection director Rose St Louis said: “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.”