Lloyds Banking Group has acquired Zurich's United Kingdom workplace pensions and savings business, which it said would accelerate the development of its adviser-based offering.
The lender will bolt Zurich's operations onto its Scottish Widow's business in a deal that underlined its "commitment to the financial planning and retirement segment".
Scottish Widows presently has £124bn AUM, of which £35bn is workplace pensions business, so this represents growth of up to around a half in one stroke.
Zurich UK chief executive Tulsi Naidu added: "We see today's announcement as a very positive step forward for our business".
The deal brings with it 500,00 customers and is being seen as a major shot in the arm to Lloyds' Scottish Widows pensions and retirement business, Scottish Widows having been acquired by the United Kingdom bank in 1999.
Reuters noted in its coverage of the news that bankers have also speculated that Scottish Widows and Standard Life Aberdeen (LON:ADN) could form an insurance tie-up, with Lloyds being a major shareholder in the FTSE 100 giant. Our UK life and savings strategy is simple - to establish market leading positions in retail wealth, and retail and corporate protection, while growing our new corporate longevity and de-risking business.
It also intends to provide a flexible investment capability to support advisers to create bespoke client investments and access assets not previously available via Scottish Widows.
The deal will see Zurich's 500,000 corporate clients join Lloyds' pension arm Scottish Widows.
Around 200 Zurich employees, mainly based in Cheltenham, in the west of England, are expected to transfer to Lloyds.
The acquisition is expected to partially close in the first quarter of 2018, with subsequent completion and transfer of assets following the required regulatory and legal approvals. The parties, however, did not disclose the financial terms of the deal.