Lloyds Banking Group has announced its intention to acquire Cavendish Online, a leading UK protection business which offers hybrid direct to consumer, guided and advised life insurance, critical illness and income protection services.
As announced in February 2022, the Group aims to deepen and innovate in consumer relationships, and has targeted becoming a top-three protection provider by 2025.
The acquisition of Cavendish Online will enable Lloyds Banking Group to better support existing Halifax, Lloyds Bank and Bank of Scotland customers’ protection needs by providing advice and guidance at key moments.
Lloyds Banking Group will continue to offer mortgage-focused protection advice in branches, as well as providing Scottish Widows-branded protection products through independent financial advisers. Cavendish Online will continue to offer insurance broker services to customers through its existing distribution channels, operating as a separate company within the Group.
A consideration of £12 million will be paid for the entire share capital of the Cavendish Online business upon completion. Subject to regulatory approvals, the acquisition is due to complete in the fourth quarter of 2022.
Antonio Lorenzo, Chief Executive of Scottish Widows and Group Director, Insurance and Wealth, 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.”
John Nelmes, Director of Cavendish Online added: “Since the company was founded in 2000, 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.”
Rose St Louis, Protection Director at Lloyds Banking Group 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.”
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