Tesco and Fortis finalise insurance partnership
(Thomson Reuters ONE) - Tesco Personal Finance Plc (TPF) and Fortis (UK) Ltd (Fortis) haveconcluded their previously announced* discussions to form a newpartnership providing motor and household insurance.The partnership will give Tesco responsibility for retail pricing,sales and marketing, customer service and new product developmentproviding greater control of the insurance products sold under theTesco brand. Fortis will use its considerable expertise to provideunderwriting and claims management.Millions of UK motorists and householders will benefit as Tescointroduces better products, keener prices and the high levels ofservice they have come to expect from Tesco.More than 1500 new jobs will also be created in the UK as a result ofthe deal.The partnership also includes the creation of a new entity tounderwite and manage claims. Known as Tesco Insurance Limited the newentity will be owned 49.9% by TPF and 50.1% by Fortis. It will startwriting business towards the end of next year.Both parties intend to invest capital to support the development andgrowth of Tesco Insurance. The amount of capital invested willreflect both parties' respective equity proportions and may change asthe business develops. Initial investments are expected to be in theregion of £100m (EUR 115 million) each.The partnership, which will initially run until at least 2015, coverscertain TPF insurance products including car, van and householdinsurance. This area of TPF's business currently involves over £500million (EUR 573 million) in annualised Gross Written Premium.The deal will add another 1.5 million motor and household customersto Fortis UK's existing customer base of around 7 million people.The number of cars insured by Fortis will increase to around 2.7million making it the second largest car insurer in the UK.**Tesco Insurance Limited will be managed independently from FortisUK's other insurance businesses.*Announced on Thursday 25th June 2009. See original press releasehttp://www.fortis.com/press/info/EN_TESCO_FORTIS_25062009.pdf fordetail.** Based on EMB analysis of FSA returns published in 2008Fortis (Insurance UK) is a leading provider of personal andcommercial lines insurance solutions in the UK. Fortis UK has twomain divisions, manufacturing both non-life and life products, whichare distributed through a range of channels including brokers, IFAs,intermediaries, affinity partners and the Internet, as well asvarious wholly or partially-owned companies (RIAS, Fortis InsuranceSolutions, Affinity Solutions Ltd, Text2Insure and InsureTECHSystems). Fortis insures in excess of 6.9 million customers workingwith a range of partners. It employs almost 3,000 people with a headoffice based in Eastleigh and others in Belfast, Bournemouth,Gloucester, Reigate, Haywards Heath, London, Redditch, andStoke-on-Trent.Fortis holding (Fortis SA/NV and Fortis N.V.) consists of (1) a 75%ownership of AG Insurance, (2) Fortis Insurance International, (3) a45% stake in Royal Park Investments - a structured credit portfolioentity - and (4) financial assets and liabilities of variousfinancing vehicles. AG Insurance is overall market leader and aleading player in the Employee Benefits market. The internationalinsurance activities (Fortis Insurance International) are located inthe UK, where Fortis is the third largest player in the market forprivate car insurance, France, Hong Kong, Luxembourg (Non-Life),Germany, Turkey, Russia, Ukraine and joint ventures in Luxembourg(Life), Portugal, with Millenniumbcp Fortis being a clear marketleader, China, Malaysia, India and Thailand. Fortis currently employsover 10,000 people.Tesco Personal Finance is fully-owned by Tesco Plc. It is the UK'slargest supermarket bank. Since its launch in 1997, it has grown tohave nearly six million customer accounts across 28 financialproducts and services.TPF offers consumers a range of simple and affordable financialproducts and services including: general insurance - motor, home, petand travel; credit cards and personal loans; personal savings; TescoCompare and a network of cash machines (ATMs). Products are soldthrough multiple channels including in-store, by telephone andonline.In addition to the 1500 jobs this joint venture will create Tesco hasalready created more than 200 new jobs this year in its Edinburgh HQand on August 20th announced a further 800 new jobs as a result ofits decision to open a new operations centre in Glasgow next year.Press Contacts Fortis UK :Paul Lynes +44(0)23 8031 3152Vanessa Neil +44(0)20 7251 3801Press Contacts Fortis holding :Brussels: +32 (0)2 565 22 Utrecht: +31 (0)30 226 32 66 61Investor Relations Fortis holding:Brussels: +32 (0)2 565 53 Utrecht: +31 (0)30 226 65 78 66Tesco:Media: Jonathan Church +44(0)19 9264 4645Angus Maitland +44(0)20 7379 5151Investor relations: Mark George +44(0)19 9264 4800http://hugin.info/134212/R/1340828/320538.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 11.09.2009 - 07:45 Uhr
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