DLG: Nearly 400 staff
The Solicitors Regulation Authority (SRA) has approved the sale of DLG Legal Services – the alternative business structure owned by insurer Direct Line – to Aviva.
The companies announced yesterday that the SRA approval, as well as those of the Financial Conduct Authority and Prudential Regulation Authority, meant that key conditions in Aviva’s £3.7bn takeover of Direct Line had been satisfied.
The Competition and Markets Authority (CMA) is currently conducting an initial phase 1 investigation of the deal, deciding whether to refer the deal for a more detailed phase 2 probe.
A decision is due by 10 July but Aviva has waived CMA clearance as a condition of the acquisition. As a result, subject to court approval, the deal is set to complete on 1 July.
Aviva told the London Stock Exchange yesterday: “Following constructive engagement with the CMA, Aviva remains confident of securing unconditional clearance by the phase 1 statutory deadline.”
In its most recently published accounts, for 2023, DLG Legal Services reported a profit before tax of £1.2m on a turnover of £17.2m, and has retained earnings of nearly £15m sitting on its balance sheet.
Employing around 370 staff, it advises Direct Line policyholders on personal injury, inheritance and property claims as well as contract and employment disputes, and provides them with a legal advice helpline.
DLG Legal Services is headed by Lisa Veitch, a solicitor who previously worked at Minster Law.
Unlike several of its competitors, Aviva has never set up its own law firm.
The scheme document estimates that the two companies will between them spend £23m on legal fees in completing the deal. Clifford Chance is acting for Aviva and Slaughter and May for Direct Line.
