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Tesco, Fortis To Ink Insurance Partnership

The new partnership is expected to create more than 1,500 jobs in the UK

Tesco, a UK-based retailer, has stated that its personal finance unit will form a joint-venture with Fortis UK, to offer customers with motor and home insurance – reported Bloomberg.

Cheshunt, England-based Tesco, said: “The two parties are in “exclusive discussions” and an agreement has been reached “in principle. The supermarket company will take greater control of pricing and new product development, while Fortis will bring “expertise on underwriting and claims management.

Tesco bought full control of its consumer finance venture from Royal Bank of Scotland for 950 million ($1.55 billion) last year, as it rolls out banking services through more supermarkets.

Andrew Higginson, CEO of Retailing Services, said: “This is an important strategic move in the development of Tesco Personal Finance under Tesco’s sole ownership. The general insurance is a key area.”

Tesco stated that the new partnership will create more than 1,500 jobs in the UK. Final terms should be agreed in the next two months, subject to regulatory approvals.