Deal includes a distribution agreement between Co-op and Markerstudy
The Co-op has sold its underwriting business, CIS General Insurance, for £185m to Markerstudy.
The deal includes a 13-year distribution agreement for Markerstudy to distribute motor and home insurance products to the Co-op’s 4.6m active members.
Through its distribution business, Co-op Insurance Services, the Co-op has said it will also work with Markerstudy to develop new insurance products.
The Co-op said that a part of the decision to select Markerstudy as its partner for home and motor insurance was its commitment to retain a large number of roles.
The transaction is expected to be completed in Q2 2019, subject to PRA and FCA approval.
Markerstudy chief executive Kevin Spencer said he was delighted with the deal.
He added: “Our roots are firmly in the UK insurance industry, where we provide cover to more than 1.5 million customers, and offer value and choice, coupled with award-winning service.
“Our purchase of the Co-op’s insurance underwriting business and the arrangement to provide insurance products to its members is testimony to our robust business model and investment in our people and technology.
“This is an exciting partnership opportunity for us, where we hope to combine our experience and expertise into a shared vision of success, enabling us to assume a significant role in the longevity of this cherished household name.”
Pippa Wicks, deputy chief executive at Co-op added that this deal would enhance the insurance offer to Co-op members.
Wicks said: “Markerstudy has shown a clear willingness to partner with us, and to develop a compelling range of products which will increase our insurance footprint and extend our Co-op difference.
“The Co-op has a long and distinguished history in providing insurance for its members and I’m delighted that this will continue through our partnership with Markerstudy.
“We have always been mindful of our insurance colleagues and a key factor in our selection was the commitment given by Markerstudy to maintain and then look to expand the operation.”
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