The transaction was first agreed upon in October last year, as part of the announcement, Ageas has also received a reimbursement of an internal loan of £21m.
Following the completion of this transaction, Steve Kingshott, chief executive of Tesco Underwriting, has been appointed to the additional role of chief insurance officer and joins the Tesco Bank executive committee with immediate effect.
Earlier this year, Tesco Bank also announced that from 1 August 2021, all its new and renewing car and home insurance policies will be underwritten by Tesco Underwriting. This will replace the external panel of six insurers that the group currently use.
Gerry Mallon, chief executive, Tesco Bank, said: “Today’s announcement underlines our commitment to the one million customers who trust us to protect their homes and cars. On their behalf we’ll continue to focus on products that have a strong emphasis on value, helpful benefits and rewarding loyalty.
“We’re also proud to warmly welcome over 350 new colleagues in Reigate, Newcastle, Eastleigh and Gloucester to Tesco Bank. Their focus on our customers, and doing the right thing, epitomises the best of Tesco’s values.”
Ant Middle, CEO, Ageas UK, added: “The success of Tesco Underwriting over the last ten years is further evidence of our credentials and expertise for building strong partnerships and we are justifiably proud of the progress made by this business.
“Nevertheless, now is the right time for us to hand over to Tesco Bank as we move our focus to building on our core strengths in our heartland of personal lines insurance through the broker and aggregator channels.”