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Lloyds to acquire Zurich’s U.K. workplace retirement and savings business

Lloyds Banking Group will acquire Zurich Corporate Savings, a U.K. workplace retirement and savings business, in a deal that will bolster its current offering.

A news release on Lloyds' website said the deal will add 19 billion ($25.4 billion) in assets under administration to its Scottish Widows retirement business, which manages 35 billion in workplace retirement assets.

Zurich Corporate Savings includes multiemployer plans — or master trusts — and group self-invested personal pension offerings.

Partial completion is set for the first quarter of 2018, with subsequent completion and transfer of assets following regulatory and legal approvals. A Lloyds spokeswoman said financial terms are not being disclosed.

"Today's announcement is a clear signal of Lloyds Banking Group's commitment to the financial planning and retirement segment," said Antonia Lorenzo, director, insurance and wealth, and CEO at Scottish Widows, in the release.

In a separate release by Zurich, the firm said the deal includes a multiyear, exclusive distribution partnership under which Zurich will provide life protection solutions to certain corporate clients of Lloyds' commercial banking services.

"We are simplifying our organization and focusing on markets where we have strong assets and can best serve our customers and distributors," said Tulsi Naidu, CEO of Zurich U.K., in the release.

About 200 Zurich employees, including key management, relationship managers, technical experts and operations staff are expected to transfer to Lloyds.

A Spokesman for Zurich could not immediately be reached for comment.