LV= manages 10.3 billion pounds in assets, while Teachers Assurance manages around 1 billion pounds, LV= said in a statement.

The company declined to give a figure for the size of the acquisition.

Teachers Assurance's unit trust business will transfer to Threadneedle Investments, LV= added.

Shock British pension reform has dented sales at life insurers this year, seen as a key factor behind Aviva (>> Aviva plc)'s recent $8.8 billion deal to buy Friends Life (>> Friends Life Group Ltd).

New European Solvency II regulations, to be implemented in just over a year's time, are also seen driving consolidation in the insurance sector.

(Reporting by Carolyn Cohn; editing by Simon Jessop)

Stocks treated in this article : Aviva plc, Friends Life Group Ltd