FRESH from winning the business of Tesco, Chandler’s Ford insurer Fortis has snapped up the insurance arm of motor parts firm Kwik-Fit for £215m.

The deal, which is subject to the approval of regulators, creates a combined retail customer base of 1.6 million, making Fortis the fourth largest personal insurance broker in the UK.

The combined reported revenue of Kwik Fit Insurance Services (KFIS), the insuring arm of the motor parts group, was £89m in 2009 and would bring Fortis’ total retail revenues to £189m. Kwik-Fit has around 600,000 customers holding 1.2 million policies.

Barry Smith chief executive of Fortis UK, said: “This is a great acquisition for Fortis which further strengthens our retail capability and adds a respected business and their powerful brands to our portfolio.

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“There is very good alignment between the businesses with a shared focus on delivering excellent customer service.

The purchase of Kwik-Fit Insurance Services is part of Fortis UK’s strategy to increase the breadth and depth of our products.

“The complementary strengths of Fortis and Kwik-Fit will create an exciting retail business focused on customer needs whilst generating a greater return for our company.”

Brendan Devine, managing director of KFIS, said: “We are delighted to be part of Fortis which is a highly reputable global business. Kwik-Fit Insurance Services has seen profitable growth over recent years and being part of the Fortis group will allow us to continue on this journey. This is a great strategic fit for our business and with Fortis being a large multinational it gives our people even more scope for further development and career growth.”

Assuming the deal goes through, which is expected this autumn, KFIS will become a subsidiary company of Fortis UK with its existing management continuing to run the business.

Fortis, which is soon to re-brand as Ageas, will employ around 4,000 people in the UK. It already employs over 1,000 people at its Tollgate offices in Chandler’s Ford.