Co-operative Group Limited has let go of its underwriting unit for the benefit of its insurance distribution business.
The Co-op’s CIS General Insurance Limited is being sold to Markerstudy for £185 million. Meanwhile a 13-year agreement with the latter, to distribute motor and home insurance products, has also been reached.
“The sale of the underwriting business will allow Co-op to focus on its strategy of providing a broader range of insurance products to its 4.6 million members which meet their different needs,” stated the mutual when it announced the transaction, which is expected to complete in the next six months.
“Under the distribution business of Co-op Insurance Services Limited, Co-op will focus on developing innovative propositions with Markerstudy while continuing to work with existing partners who already support some of the Co-op’s existing products.”
According to the Co-op, Markerstudy was chosen for the deal not only for its product range and technology capability but also for its “desire to create an environment that facilitates expansion and growth as well as its commitment to retain a large number of colleague roles.”
It was previously reported that preserving at least 800 jobs was among the terms being negotiated by the firms.