Deal will boost Fortis UK customer base by 1.5 million
Fortis has emerged as the majority owner in a new business providing insurance to Tesco customers.
Tesco Pesonal Finance (TPF) and Fortis agreed a deal in June to provide motor and household insurance to the supermarket’s customers.
The two companies created Tesco Insurance Ltd for the arrangement, which is 49.9% owned by TPF and 50.1% by Fortis. The deal is expected to create 1,500 jobs and will account for more than £500m in gross written premium.
The partnership will give Tesco responsibility for retail pricing, sales and marketing, customer service and new product development. Meanwhile, Fortis will provide underwriting and claims management.
Fortis said the deal would run until 2015, covering TPF products including car, van and household insurance. It would also add another 1.5 million motor and household customers to Fortis UK’s existing customer base of around seven million people.