M&S and HSBC extend banking joint venture

Marks & Spencer has announced plans to open 50 in-store bank branches over the next 2 years, and to re-brand M&S Money as M&S Bank.

It is a significant development for Marks & Spencer and in addition to the card, loans, savings and insurance products currently offered by M&S Money, the product range will extend to current accounts this autumn and mortgages at a later date.

It is understood that M&S Bank will operate under a separate banking licence to HSBC, but that it remains a subsidiary of the bank. However, profits will be continue to be split 50:50 between the 2 partners; last year the financial services business contributed profits of just over £50 million to M&S's operating profits.

The reputational risk of offering M&S branded mortgages is probably the most significant issue for the new bank, but these will effectively be HSBC products, and presumably subject to the same underwriting rules. The move into mortgages and current accounts pre-empts a similar move expected by Tesco Bank this year.

L&G renews major partnership with Nationwide

L&G has announced the renewal of its partnership with Nationwide, to market protection products through the building society's 1,000-strong adviser network.

The partnership means that L&G maintains its leading position as a provider of term and critical illness products to the society's customers and builds on other significant partnerships, including those with Yorkshire Building Society and Barclays announced in the last 12 months. 

However, as with its approach to general insurance partnerships, Nationwide continues to work with a range of providers including AXA Sun Life, Aviva and Pinnacle to offer an over 55s life policy, income protection and "Lifestyle Protector" products respectively.

Tesco launches van and tradesman insurance with AXA

Tesco has announced the launch of specialist van and tradesman covers for SMEs, in a new partnership with AXA. The insurer is responsible for the "sales, adminstration and underwriting" of the new products and it is understood that this is through its Partner Solutions team based in Glasgow.

Tesco van insurance can also include motor breakdown and legal cover provided by AXA Assistance and Lawclub respectively. The tradesman policy is based primarily on a public liability cover, which can be extended to include employer's liability, tools and trailer contents.

The launch of SME covers by Tesco does not come as a surprise, although the choice of AXA over its car and houseold insurance joint venture partner, Ageas, is of some interest.  

RSA announces John Lewis partnership

RSA has announced a partnership to provide household and pet insurance to John Lewis and Waitrose customers.

The announcement came in RSA's results for the first quarter of 2012 and unusually for such a major partnership deal, this was made in advance of final contracts being signed. (Update: Official confirmation of the deal made on 24 July 2012.)

The partnership follows a detailed tender exercise managed by the John Lewis Partnership in 2011 and represents a significant loss for AXA; of what is widely regarded as one of the UK's leading affinity partnerships. AXA remains the incumbent insurer for household, pet, travel, wedding and event covers. It is understood that the travel cover is also likely to be removed from AXA's portfolio and further launch announcements are expected soon.

Ageas continues as the motor provider through its UKAIS operation and Friends Life as the life provider.

RSA selected as pet insurer for Argos & Homebase

RSA has recently secured a new partnership with Home Retail Group to offer pet insurance through its Argos and Homebase brands. The deal commenced at the end of January 2012 and is for a 5 year period.

RSA has replaced BDML Connect; the latter having previously distributed a product underwritten by Agria Forsakring AB.

Unlike many other major insurers, RSA has focused a great deal of effort in developing pet insurance partnerships and other significant deals include Tesco Bank and Marks & Spencer. 

BDML Connect continues to partner with Argos and Homebase for Home Insurance (May 2013 - no longer available) and Chartis provides the retailers' Travel Insurance (May 2013 - Chartis replaced by Insure & Go).

Provident joins Equity's affinity panel

Provident Insurance announced recently (February 2012) that it is to join Equity Insurance Partnerships' motor panel.

EIP is the specialist affinity division of IAG UK and boasts an impressive list of motor insurance clients including Nissan, Santander, Mazda and First Direct.

Provident already works as an insurer on a wide range of partnerships' panels including those of Tesco and Marks & Spencer and is often regarded as an obvious and complementary choice to work with other insurers.