17th Dec 2015 09:16
LONDON (Alliance News) - RSA Insurance Group PLC Thursday said it has won a new five-year partnership with underwrite all of Nationwide Building Society's home insurance products.
Direct Line Insurance Group confirmed that it had lost its home insurance partnership with Nationwide, and from spring 2017 would no longer underwrite home insurance for Nationwide's customers. Direct Line said that in 2014 the gross underwritten premium related to Nationwide Building Society was GBP201.7 million, which accounted for 22.4% of its Home segment's gross written premium. However, it said the contribution to Home's operating profit was "substantially lower".
"We are thrilled to be working with Nationwide Building Society. This deal reaffirms our status as both a market leader and a preferred partner of some of the best known brands in the UK," said Chief Executive of RSA UK and Western Europe Stephen Lewis in a statement.
"As a leading home insurance provider, we are a natural partner to the world's largest building society. We will be able to offer Nationwide's members a high quality and competitive product designed around their needs, complemented by our first class service," Lewis added.
Shares in RSA were up 1.4% at 429.50 pence Thursday morning, whilst shares in Direct Line were up 1.1% at 413.90 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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