NFU Mutual has confirmed it is quiting the broker market in a bid to strengthen its mutual position.

The move comes after several consortiums had prepared bids to demutualise the insurer. The Stratford-based insurer said the sale Avon Insurance to NIG would now enable it to strengthen its mutual position.

The agreement covers approximately 350,000 commercial and personal lines policies.

Ian Geden, Managing Director of NFU Mutual said: "NFU Mutual has received industry accolades for the service it delivers to its customers and it is for this reason that we intend to continue to develop relationships and generate business directly through our own channels of distribution under the NFU Mutual brand. Avon does not fit with this strategy because its business is generated and handled via third party relationships.

"NFU Mutual is one of the strongest Life and General Insurers and this transfer reinforces our financial position.

"The Board believes that this transaction will strengthen NFU Mutual's strategic focus on the core business and help to further promote our mutuality."

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