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The co-op is coming back to the life insurance market six years after selling its business to pay off its debts.
Royal London, which paid £ 220 million for the cooperative's life insurance business in 2013, will subscribe the Co-op product.
The Manchester-based mutual is starting to re-enter the markets it had abandoned as part of a bailout plan to avoid a collapse in 2013 – but it wants to do so without making big investments. It believes that its brand and bespoke products will attract customers, particularly among its 4.6 million members.
Last month, the cooperative announced the signing of an agreement for the sale of its property and casualty insurance business to Markerstudy for £ 185m. It will also develop its own branded products in this market and already has a branded travel insurance coverage.
The cooperative was forced to sell large segments of its business after discovering a 1.5 billion pound capital hole in its banking subsidiary in 2013. The bank was sold and the debt reduced by 1, £ 8 billion to around £ 800 million. Its main grocery and funeral stores are doing well, and they are looking for ways to offer more products to members who want to support the company they own.
The group returned to the healthcare sector last year with the purchase of Dimec, an online pharmacy. The cooperative sold its chain of chemists to Bestway for £ 620m in 2014.
"The cooperative is renewing its roots. . . She has proven expertise for 175 years and in the insurance and healthcare sectors. It develops new solutions for members in an agile and light way, "said the group.
Those who subscribe to the co-op's life insurance will be able to take two days of six months of payment holiday for the duration of the policy after a 12-month qualifying period. They could then reduce the coverage instead of paying back the shortfall. They can also opt for protection against serious diseases.
Pippa Wicks, badistant general manager of the cooperative, said: "Life insurance is not a new territory for us, we have a rich history in this area and we can see that it is clearly needed to return to this sector and provide a separate business. -op solution for our members. "
The cooperative has more than 2,500 food stores and 1,000 funeral homes.
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