Legal & General has secured a new 5-year general insurance partnership with Skipton; the UK's fourth largest building society. The deal is a reasonably significant one in premium terms with an estimated annual GWP of around £5 million, focused on home and landlords' insurance.
L&G works with 15 banks and building societies, but its partnerships are overwhelmingly based upon protection products (e.g. Barclays and Yorkshire banks and Nationwide and Leeds building societies). These can provide a good entry-point into general insurance relationships as has happened with Skipton (L&G has been its protection partner since 2012) and previously with Principality Buildng Society (see our post dated 9th November 2015.)
RSA remains the dominant home insurance partner for UK building societies, but the loss of Skipton is a significant one for A.J. Gallagher, which continues to work in the sector with mostly small regional lenders.
The deal was signed in September and is expected to go live in December 2016. It is noticeable that at present, home and landlords' insurance is no longer available to new customers on the Skipton Building Society website, which suggests a smooth handover between A.J. Gallagher and L&G has perhaps not been achieved.
No comments:
Post a Comment