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Co-op bids to save jobs as part of insurance deal – reports

Co-op bids to save jobs as part of insurance deal – reports | Insurance Business

Co-op bids to save jobs as part of insurance deal – reports

Earlier this month it was reported that a deal to offload its general insurance unit could be in the offing for the Co-op Group, amid supposed advanced talks with a likely buyer. Now here’s the latest on the potential swoop, according to Sky News sources.

A report by the British news network said a jobs commitment from Markerstudy Group is being sought to ease concerns that many of the Co-op’s insurance staff will be let go as part of an estimated £300 million transaction.

Retaining the mutual’s insurance base in Manchester, to preserve at least 800 posts, is said to be part of the terms being negotiated.

The up-for-sale division employs about 1,200 people. According to the report, which cited sources close to the discussions, the commitment to the workforce’s majority would be informal and not legally binding. 

The Co-op, whose chief financial officer Ian Ellis is retiring in May 2019, sold its life insurance business to fellow mutual Royal London about five years ago.