Zenith is underwriting Guaranteed Asset Protection (GAP) insurance for AA Warranty.
The deal marks the Gibraltar based insurer's first move into the GAP market.
Steve Tidd, Zenith's chief executive, said: “This diversification into the GAP market represents a significant strategic development for Zenith; it allows us to limit our exposure to the underwriting cycle as GAP is not susceptible to the same pricing or competitive pressures as the private car market.”
AA Warranty customers will be offered GAP policies underwritten by Zenith.
Tidd added: “We're delighted to be working with AA Warranty. Our expertise in niche motor lines means we are well placed to service the demand for GAP cover, and look forward to providing brokers and other intermediaries with this specialist product and service through our relationship with AA Warranty.”
Simon Tennyson, managing director of AA Warranty, said: “The AA's name is trusted by millions of motorists and this exclusive, long term deal with Zenith means that car buyers will have access a range of innovative GAP products.”
