RBSI to lose Tesco account to Fortis for expansion plans
Tesco’s personal finance (TPF) arm will switch from RBSI’s UKI Partnerships to Fortis for car and household policies creating up to 1,500 UK jobs will be created if the partnership, agreed in principle, is ratified, the Times and others report.
Tesco receives about £500m a year in gross premiums from insurance, which it expects to grow. It said that the new jobs would be in addition to its current staff to support an expansion drive.
Andrew Higginson, Tesco’s chief executive of retailing services, said that the joint venture would offer a range of new insurance products to customers.
Fortis and Tesco are expected to agree final terms in the next two months.
Scottish jobs?
The Herald and Scotsman said the new jobs may be in Scotland.
The Herald quoted TPF chief executive Benny Higgins said: "This is a natural and orderly transition that we agreed when the buyout deal was signed. It is no surprise to them Royal Bank or anybody else. It was agreed we would migrate banking and insurance over."
Tesco Personal Finance opened a new headquarters in Edinburgh earlier this month. Asked if the insurance base might be in Scotland Higgins said "yes".
Inward investment
The Scotsman reported that the Scottish Development International (SDI), the inward investment arm of Scottish Enterprise, is in talks with Tesco to try to win the new jobs for Scotland.
A spokesman for the Scottish Government played up the contribution TPF had already made, claiming that establishing TPF's HQ in Edinburgh had led to an increase in its workforce from 250 to 450.
The spokesman added: "This demonstrates the resilience of Scotland's financial services industry and reaffirms our reputation as a leading international centre for financial services.
"We will continue, working with SDI, to promote Scotland to companies including Tesco Personal Finance as an attractive location for inward investment."
