Insurance company Fortis will create more than 1,500 new jobs as part of a deal to provide motor and household cover to Tesco’s financial arm, it has emerged.
Fortis hopes the partnership, which will initially run until at least 2015, will make it the second largest car insurer in the UK, insuring about 2.7 million drivers, according to the Press Association.
A new entity, Tesco Insurance Ltd, is being created to underwrite the insurance and manage any claims. It will be 49.9% owned by Tesco Personal Finance and 50.1% by Fortis.
Fortis currently employs almost 3,000 people in the UK.
Benny Higgins, chief executive of Tesco Personal Finance, said: “This new partnership with Fortis will provide us with the flexibility to build on this success and grow the business further.
“I’m delighted that we will also create more than 1,500 new UK jobs.”