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Fortis 'close to landing Tesco insurance deal'
25.06.09
Fortis Insurance is the front-runner to pick up the contract to run the insurance operations of Tesco's financial services division.
Trade magazine Post says the Belgian company, which provides motor insurance for Marks & Spencer, is nearing a deal to provide motor and household products for the supermarkets giant.
It will be yet another knock for bailed-out bank Royal Bank of Scotland, the current provider, whose Direct Line arm has already lost Tesco's life business to Friends Provident. A Tesco spokesman told Post: "I can confirm we are reviewing the partners that provide some of our insurance products."
Experts say the business takes in £600 million a year in insurance premiums, and Fortis could employ 1000 extra staff in the UK if the deal goes ahead.
