Tesco Personal Finance (TPF) has struck a deal with Fortis UK for the insurer to provide its motor and household insurance.

Tesco Personal Finance (TPF) has struck a deal with Fortis UK to provide its motor and household insurance.

The deal will see Tesco take greater control of pricing and the development of new products, while Fortis will bring skills in underwriting and claims management. Jointly, the companies will create more than 1,500 new UK jobs.

Tesco chief executive of retailing services Andrew Higginson said: “This is an important strategic move in the development of Tesco Personal Finance under Tesco’s sole ownership. General insurance is a key area for TPF and this partnership with Fortis will enable us to take it to the next level. I am delighted to be working with them at this exciting time for our business.”

The move comes weeks after TPF moved into its new Scottish headquarters in Edinburgh and opened the first of its new banking and insurance centres in Tesco stores.

The partnership involves over £500 million in annualised total Gross Written Premium (GWP) and is expected to grow.  It could be underwriting new business and renewals from the second half of next year.