It claimed the announcement illustrated the threat to jobs that could come with the Lloyds TSB/HBOS merger.
The insurance business is based in Newport, south Wales, already an employment blackspot.
Unite regional officer Steve Pantak said, "This is highly premature and totally unacceptable. Lloyds must reconsider their position even at this late stage and guarantee no compulsory redundancies. We strongly believe that any cost savings can be met with natural wastage and voluntary means. This is a bad omen of what is to come when Lloyds TSB merges with HBOS."
The site in Newport employs 2,000 staff. The staff positions are split between general insurance and telephony workers.