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Tesco, Fortis Ink Insurance Partnership

To provide motor and household insurance in the UK

Belgian insurance group, Fortis and Tesco have teamed up to provide motor and household insurance in the UK – reported Reuters.

As per the discussions held in June, both the companies would provide a first investment of about GBP100 million ($167.3 million).

The joint venture is expected to continue until 2015, and intends to cover Tesco’s car, van and household insurance policies, which currently draws over £500 million pounds in annual gross premiums.

Fortis has stated that the deal would add 1.5 million motor and household customers to Fortis UK’s existing customer base of around 7 million people. The tie up is expected to create Tesco Insurance to underwrite and manage claims. Tesco would own 49.9% and Fortis 50.1%.

The company claims that the deal is a part of Tesco’s plans to push deeper into financial services. Last year, it bought out Royal Bank of Scotland from their finance joint venture.