Edinburgh-based Tesco Personal Finance Plc (Tesco Bank) announced it has completed the transaction to acquire the Ageas UK Limited stake in Tesco Underwriting.

“The decision to acquire Tesco Underwriting, originally announced on 14 October 2020, enables Tesco Bank to create an end-to-end insurance business that is uniquely positioned to help Tesco shoppers protect their cars and homes,” said Tesco Bank.

“Tesco Bank has acquired Ageas’s 50.1% stake in Tesco Underwriting for a total consideration of £123m, which includes reimbursement of a £21m internal loan.

“The acquisition is funded from Tesco Bank’s cash reserves.”

Tesco Underwriting CEO Steve Kingshott has been appointed to the additional role of Chief Insurance Officer, Tesco Bank, and joins the Tesco Bank executive committee with immediate effect.

Tesco Underwriting was established in 2010, underwriting Tesco Bank-branded car and home insurance policies.

Tesco Bank CEO Gerry Mallon said: “Today’s announcement underlines our commitment to the one million customers who trust us to protect their homes and cars. 

“On their behalf we’ll continue to focus on products that have a strong emphasis on value, helpful benefits and rewarding loyalty. 

“We’re also proud to warmly welcome over 350 new colleagues in Reigate, Newcastle, Eastleigh and Gloucester to Tesco Bank.”