To provide motor and household insurance in the UK

Belgian insurance group, Fortis and Tesco have teamed up to provide motor and household insurance in the UK – reported Reuters.

As per the discussions held in June, both the companies would provide a first investment of about GBP100 million ($167.3 million).

The joint venture is expected to continue until 2015, and intends to cover Tesco’s car, van and household insurance policies, which currently draws over £500 million pounds in annual gross premiums.

Fortis has stated that the deal would add 1.5 million motor and household customers to Fortis UK’s existing customer base of around 7 million people. The tie up is expected to create Tesco Insurance to underwrite and manage claims. Tesco would own 49.9% and Fortis 50.1%.

The company claims that the deal is a part of Tesco’s plans to push deeper into financial services. Last year, it bought out Royal Bank of Scotland from their finance joint venture.