Co-op Insurance still ‘core’, they insist, despite bank sale

Co-op’s general insurance business remains a key part of the Co-op Group despite Co-op Bank, the insurer’s former parent, announcing that it is looking for a buyer.

A Co-op spokesman told Insurance Times: “The Co-op Insurance is a core part of the Co-op Group and is not impacted by today’s announcement by the Co-op Bank.”

Co-op Insurance, which underwrites motor and home insurance, was once a subsidiary of Co-op Banking Group. But in October 2015 Co-op transferred the ownership of the insurer from Co-op Banking Group to the main group holding company, putting it alongside its other core divisions of food, funeral care and legal services.

At the time Co-op said the transfer was to ensure that all of the group’s wholly-owned businesses were under the group’s direct control, and to help with the forthcoming Solvency II capital regulations.

Co-op Group is a minority shareholder of Co-op Bank, owning just 20%.

The group said in a statement: “As a minority investor in The Co-operative Bank, the Co-op Group is supportive of the plan to find the Bank a new home. We will continue to work with the Bank and other investors through the process.”