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Tesco Bank completes Ageas deal; holiday park sold

Tesco Bank

Tesco Bank: taking underwriting in-house (pic: Terry Murden)

Tesco Bank has completed the acquisition of the Ageas UK stake in Tesco Underwriting. 

The decision to acquire Ageas’s 50.1% holding, announced on 14 October last year and first revealed by Daily Business in November 2019, enables Tesco Bank to create an end-to-end insurance business to help Tesco shoppers protect their cars and homes.

The £123m deal includes reimbursement of a £21m internal loan. The acquisition is funded from Tesco Bank’s cash reserves.

Steve Kingshott, chief executive of Tesco Underwriting, has been appointed to the additional role of chief insurance officer, Tesco Bank, and joins the Tesco Bank executive committee with immediate effect. More than over 350 staff in Reigate, Newcastle, Eastleigh and Gloucester will join Tesco Bank. 

Earlier this year Tesco Bank announced that from 1 August all its new and renewing car and home insurance policies will be underwritten by Tesco Underwriting.  This will replace the external panel of six insurers that Tesco Bank currently use, alongside Tesco Underwriting, to manage its car and home book.

Holiday Park sold

Drummohr Holiday Park in Levenhall, Musselburgh, has been sold to WCF. 

The holiday park has 12 letting lodges, 155 touring caravans, tents and motorhomes together with 20 glamping units. The site also includes storage area for up to 40 touring caravan, a three bedroom bungalow, two amenity blocks and a shop.

The 10.74 acre (4.35 ha) site is situated in the formerly walled gardens of a monastery and was converted to a holiday park in 1981. It has been owned and run by the same family since 1988.

Selling agent Richard Prestwich, director in the leisure and trade team at Savills, said: “Holiday Parks have become exceptionally sought-after due to the growing trend for staycations.

“It is encouraging to witness new entrants, such as WCF, targeting the holiday parks market and competing with the existing multi park owners that have traditionally dominated the marketplace.”

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