Allen & Overy has advised the Co-op on an agreement to sell its insurance underwriting business, CIS General Insurance Limited, to Markerstudy.

The deal will see Co-op receive GBP185 million for its underwriting business and enter a 13 year distribution agreement to distribute motor and home insurance products.

The Co-op will focus on providing a broader range of insurance products through its distribution business Co-op Insurance Services Limited and will develop innovative propositions with Markerstudy, whilst continuing to work with its existing partners.

This deal follows the news that A&O is the 2019 winner of the Legal 500 award for Firm Specialism of the Year in Insurance, having worked on some of the most high profile insurance matters in the last 12 months.

Kate McInerney, counsel in the Insurance team who advised on this deal, comments: "This deal establishes a partnership which will see Co-op enhance its insurance offering for members and one which we were very pleased to be involved in. Transactions such as this demonstrate the strength of our insurance offering, combining extensive sector experience working with some of the world’s largest insurers with our market-leading M&A expertise."

The A&O team was led by corporate M&A partners Stephen Mathews and Nigel Parker and Insurance counsel Kate McInerney, supported by Corporate senior associate Karishma Naravane, and associates James Kingston, Adam Smith and Nathan Charnock. Employment advice was provided by Sarah Henchoz and tax advice was provided by counsel Tim Harrop. Partner Jane Higgins and senior associate Francesca Parnell provided pensions advice.

The agreement is subject to typical conditions to completion, including required regulatory approvals.

For further information, please contact Elizabeth Randall, [email protected] on +44 (0)20 3088 2989.