Sale of Co-op insurance business completed in £185m deal
The Co-op Group has confirmed the sale of its insurance underwriting business to Markerstudy Group in a £185m deal.
The Manchester-based business also confirmed it has entered into a 13-year partnership agreement with Markerstudy for motor and home insurance products.
Co-op bosses announced their intention to sell to Markerstudy in January 2019. The sale is to Soteria Finance Holdings Limited, a company owned by Markerstudy Group, TwinFocus and funds managed by Blackstone Credit.
The decision drew an impassioned response from Unite the Union, which claimed that the movement was betraying its ethical philosophy with the sale to Markerstudy, which it branded a “known union-busting organisation”.
Co-op chief executive, Steve Murrells, said today: “We’re pleased to announce that the sale of our underwriting business has now successfully completed for proceeds of £185m.
“From the outset we have been clear of our intention to significantly grow our insurance footprint and the completion of this deal coincides with the start of a 13-year partnership for Co-op Insurance and Markerstudy Group, enabling us to now deliver upon our ambitious expansion plans, to meet more of our members’ insurance needs, more of the time.”
Markerstudy Group of Companies was established in 2001 and is a privately-owned UK organisation headquartered in Kent and employing more than 3,500 staff.