Markerstudy Group of Companies (MSG), a privately-owned UK organisation headquartered in Kent, has agreed to acquire Co-op's underwriting business, CIS General Insurance, for ₤185m.

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Image: Markerstudy to acquire underwriting business from Co-op. Photo: Courtesy of Stuart Miles/FreeDigitalPhotos.net

The Co-op has also signed an agreement under which Markerstudy will sell motor and home insurance products for a period of 13 years.

Co-op said it will continue to sell insurance products and increase the range of products available to Co-op member.

The transaction is expected to be completed in the second quarter of this year, subject to approval from Prudential Regulation Authority and Financial Conduct Authority.

Co-op deputy CEO Pippa Wicks said: “From the outset we’ve been very clear that we intend to enhance our insurance offer for Co-op members and this agreement provides the means for us to do this in an effective way. Markerstudy have shown a clear willingness to partner with us, and to develop a compelling range of products which will increase our insurance footprint and extend our Co-op difference.

“The Co-op has a long and distinguished history in providing insurance for its members and I’m delighted that this will continue through our partnership with Markerstudy. We have always been mindful of our insurance colleagues and a key factor in our selection was the commitment given by Markerstudy to maintain and then look to expand the operation.”

The UK-based co-operative business stated that it selected Markerstudy, because of its desire to create an environment that facilitates expansion and growth along with its commitment to retain several of the employees in their respective roles.

Markerstudy group CEO Kevin Spencer said: “We are delighted to have been chosen by the Co-op. Our roots are firmly in the UK insurance industry, where we provide cover to more than 1.5 million customers, and offer value and choice, coupled with award-winning service. Our purchase of the Co-op’s insurance underwriting business and the arrangement to provide insurance products to its members is testimony to our robust business model and investment in our people and technology.

In last June, the company announced that it will consolidate its subsidiaries including Markerstudy, Zenith Insurance Management UK and Zenith Marque Insurance Services.

The move could positively affect its services including underwriting, operational and claims services, to their 1,000 plus broker partners and over 1.5 million policy holders, but with no changes to key personnel.