The UK’s Co-Operative Group Limited (Co-Op) has decided to let go of its underwriting sector, known as “CIS General Insurance”. It has been announced that Markerstudy have bought the unit for £185 million.
Five years ago the Co-Op nearly collapsed. Since then the company has sold its banking division and a number of properties. This shift allowed them to focus heavily on food stores, food wholesaling and funeral homes.
The Co-Op has confirmed that they will continue to sell insurance. A deal has been struck with Markerstudy to uphold a 13 year agreement of which distribution to motor and home insurance products will continue.
Pippa Wicks, deputy Chief Executive at Co-Op was quoted: “From the outset we’ve been very clear that we intend to enhance our insurance offer for Co-Op members and this agreement provides the means for us to do this in an effective way.”
Having sold CIS General Insurance, the Co-Op has remained positive that their deal will bring a brighter future for their Insurance sector.
A mutual from the Co-Op stated: “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,”
“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.”
After their announcement the Co-Op stated that Markerstudy had been chosen for the deal due to its wide product range, technology capabilities, and it’s “desire to create an environment that facilitates expansion and growth, as well as its commitment to retain a large number of colleague roles”.
It has also been revealed that during the deal’s negotiations, the firms have agreed to preserve at least 800 jobs within CIS General Insurance. The transaction is expected to be completed within the next six weeks.