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Tesco Bank completes full acquisition of Tesco Underwriting

Tesco Bank acquires Ageas UK’s stake in joint venture

Tesco Personal Finance Plc. (‘Tesco Bank’) has today completed the transaction to acquire the Ageas UK Limited (‘Ageas’) stake in Tesco Underwriting.  The decision to acquire Tesco Underwriting, originally announced on 14 October 2020, enables Tesco Bank to create an end-to-end insurance business that is uniquely positioned to help Tesco shoppers protect their cars and homes.

Tesco Bank has acquired Ageas’s 50.1% stake in Tesco Underwriting for a total consideration of £123m, which includes reimbursement of a £21m internal loan. The acquisition is funded from Tesco Bank’s cash reserves.

Following the completion of this transaction Steve Kingshott, Chief Executive of Tesco Underwriting, has been appointed to the additional role of Chief Insurance Officer, Tesco Bank, and joins the Tesco Bank Executive Committee with immediate effect.

Tesco Underwriting was established in 2010, underwriting Tesco Bank-branded car and home insurance policies that have proved popular with customers.

This investment is in line with Tesco Bank’s strategy of focusing on propositions which better meet the needs of Tesco shoppers, and builds on the unique offering insurance customers already benefit from as part of the wider Tesco family, such as the guaranteed Clubcard discount for Clubcard members. In addition, Tesco’s focus on value and rewarding loyalty, will allow the business to respond positively to the forthcoming implementation of new general insurance pricing practices.

Earlier this year Tesco Bank also announced that, from 1 August 2021, all its new and renewing car and home insurance policies will be underwritten by Tesco Underwriting.  This will replace the external panel of six insurers that Tesco Bank currently use, alongside Tesco Underwriting, to manage its car and home book.

Gerry Mallon, Tesco Bank Chief Executive, said:

“Today’s announcement underlines our commitment to the one million customers who trust us to protect their homes and cars.  On their behalf we’ll continue to focus on products that have a strong emphasis on value, helpful benefits and rewarding loyalty. 

“We’re also proud to warmly welcome over 350 new colleagues in Reigate, Newcastle, Eastleigh and Gloucester to Tesco Bank.  Their focus on our customers, and doing the right thing, epitomises the best of Tesco’s values.

“I’d also like to thank Ageas for their partnership and expertise over the last 10 years, during which time we have grown Tesco Underwriting together.

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Notes to Editors

  1. Tesco Bank also offers Pet and Telematics Insurance, and recently launched a new Travel Insurance proposition.

  2. Tesco Underwriting currently underwrites approximately 93% of new Tesco Bank car insurance policies; 90% of renewing car insurance; 80% of new home insurance; and 74% of renewing home insurance. (Based on policies written in March 2021).

  3. Tesco Bank was recently named as Best Car Insurance Provider and Best Home & Contents Insurance Provider at the 2021 YourMoney Awards.

Media contact details:

Barry Cameron, Head of Media Relations & Public Affairs, Tesco Bank:

barry.cameron@tescobank.com, 07841 192899

About Tesco Bank

Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 3,700 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.

Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ

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