The Belgium based insurance company Fortis have emerged as favourites to tie up a partnership deal with Tesco, to manage the supermarkets Home and Motor insurance businesses. A report in the Telegraph suggests that talks between the two companies are at an ‘advanced’ stage.
Tesco has enjoyed a long standing partnership with the Royal Bank of Scotland (RBS), setting up a personal finance and home and travel insurance business in the late 1990’s in a deal that saw both parties sharing the profits on a 50/50 basis.
Tesco took full control of the personal finance business last year when it bought out the RBS share as the bank suffered it’s decline. This week the supermarket admitted that it was reviewing it’s long standing arrangements with RBS insurance arm.
The insurance business placed by Tesco is estimated to be worth £600million in premium value each year. Should an agreement be reached with Fortis it could create around 1000 jobs at Fortis UK.
1 comment so far
1 Mattwi // Jun 26, 2009 at 1:47 pm
Here we go again. What’s the betting Tesco’s will price us brokers out of the market for a year or 2, even if we quote Fortis policies