Belgium-based Fortis has emerged as leader of the pack of insurers vying for the contract to manage Tesco’s motor and home insurance businesses.
According to the Telegraph, Fortis is in ‘advanced’ talks to agree an insurance partnership with the UK’s largest retailer. Tesco admitted earlier this week that it is reviewing its long-standing insurance arrangement with the part-nationalised Royal Bank of Scotland.
RBS partnered with Tesco in the late 1990’s to set up Tesco’s motor and travel insurance businesses. Until last year, when Tesco bought out RBS’s stake in the business, the two firms split profits 50-50.
Insurance premiums sold by Tesco are worth an estimated £600 million per year. If Fortis secures the Tesco contract, it could create an extra 1,000 jobs at Fortis UK.
Fortis currently provides insurance for UK-based retailer Marks & Spencer.
