Nationwide Building Society has announced a new 5 year home insurance partnership with RSA, which will take effect from February 2017. The account, which has been held by Direct Line Group (DLG) for nearly 15 years, was worth just over £200m to the insurer in 2014. It is understood that the business was put out to tender by Nationwide in 2014 and there have been market rumours since Summer 2015, that RSA would be its new home insurance partner.
The loss of the partnership represents a considerable blow to DLG's home insurance account. Not surprisingly perhaps, DLG has suggested that the Nationwide partnership was not as profitable as other household business and has emphasised that policies will effectively be "run-off" until Spring 2018.
Nationwide is likely to be RSA's largest corporate partner and gives the insurer even greater market presence with mortgage lenders, where it currently works with a range of banks (Yorkshire, Clydesdale and Bank of Ireland) and building societies (including Yorkshire, West Brom and Nottingham).
Nationwide continues to partner with LV= for motor insurance and Legal & General for life and protection products.