Lloyds has bought Zurich's £19 billion workplace pension business.
The deal will see Zurich's 500,000 corporate clients join Lloyds' pension arm Scottish Widows.
Currently Scottish Widows manages £124 billion of pension assets, of which £35 billion is in workplace pensions.
As part of the deal around 200 Zurich staff largely based in Cheltenham will move to Lloyds Banking Group.
The acquisition will also allow existing Scottish Widows workplace pension clients to access ‘assets not previously available via Scottish Widows’.
Antonio Lorenzo, Lloyds Banking Group director and Scottish Widows chief executive, said the deal is a signal of intention for Lloyds’ push into financial advice.
‘Today’s announcement is a clear signal of Lloyds Banking Group’s commitment to the financial planning and retirement segment. The acquisition of Zurich Corporate Savings complements Scottish Widows’ growth to date and provides us with an ideal opportunity to accelerate our goal to become a market leader in this important sector for advisers and customers,’ he said.
Tulsi Naidu, chief executive of Zurich in the UK, said the sale of the corportate business was part of a 'simplification' of its business.
'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,' she said.
The acquisition will be completed in the first quarter of 2018.
Zurich will also provide group life protection to some of Lloyds Banking Group's corporate clients as part of the deal.