Tuesday, 23 December 2014

Virgin replaces BDML with Ageas

Virgin Money has selected Ageas as its new home and motor insurance partner and announced that the two organisations will be developing a range of products during 2015. Ageas will underwrite the household products and will develop a panel of insurers for Virgin Money's motor product. Ageas will be providing the sales, servicing and claims capabilities for the new partnership. 

Although the new deals marks the loss of a major "affinity brand" for BDML, it is understood that the volume of Virgin Money insurance customers has never been significant and that the partnership does not entail the transfer of an existing book to Ageas. 

Nevertheless, Virgin Money does have a wide range of channels including "stores" and "lounges", although at present, this branch network does not offer mortgage advice, or presumably, an obvious "point of sale" household insurance opportunity.  

Virgin Money continues to work with Insure & Go for its travel insurance and UK Insurance for pet insurance. 

Thursday, 11 December 2014

Nationwide remains with LV= for 3 more years

Nationwide and LV= have announced the extension of their motor insurance partnership for a further 3 years. The insurer has underwritten the building society's car insurance product on an exclusive basis since 2008. 

LV= has suggested the shared mutual status of the 2 organisations as an important factor in the extension, but it is perhaps worth noting that Nationwide continues to work with UK Insurance for the much larger household insurance partnership and with Legal & General for life cover. 

LV= also provides the motor breakdown cover for Nationwide through its Britannia Rescue brand.   

Ageas extends Tesco Bank partnership for 7 more years

Ageas UK and Tesco Bank have extended their home and motor partnership for a further 7 years. The partnership was established in 2009 with the creation of Tesco Underwriting (TU); 50.1% owned by Ageas and 49.9% owned by Tesco Bank. 

The partnership extension is an impressive result for Ageas and it is claimed that TU now underwrites 1.2 million customers and is responsible for £440 million in Gross Written Premium. This makes it one of the UK's most significant affinity partnerships. However, as recently as 2011, TU was said to be insuring 1.5 million customers and accounted for GWP of £655 million. 

Some of this decline may result from Tesco Bank working with a wider range of insurers in the last couple of years. The home insurance panel is comprised of TU, Towergate, AXA, RSA and Legal & General; the last of these added as recently as November 2014. The motor insurance panel is comprised of TU, Sabre, Covea, Chaucer and Aviva.

Outside of the TU joint venture, Tesco Bank partners with Ageas for travel insurance, RSA for pet insurance and Aviva for life cover.