Zurich sells off student insurer

Insurance giant Zurich yesterday revealed that it had sold its specialist student insurer subsidiary Endsleigh to brokering firm A-plan.

The deal – for an undisclosed price – will see Endsleigh shift to A-plan over the course of the new year, given regulatory approval.

The business, which was founded by the National Union of Students (NUS) in 1965, will function as a standalone operation from its base in Cheltenham.

Endsleigh saw profits tumble two-thirds to £2.5 million and turnover drop 16 per cent to £39m in 2016 as it overhauled its IT systems, according to accounts.

Jeff Brinley, the group’s chief executive, said: “This is a really exciting time for us and we’re delighted to be joining such a respected organisation as A-plan, who continue to deliver impressive results in a challenging market.

“Our customers, our people, NUS, insurer partners and other partners we work with can be confident that we remain committed to our transformation programme, to looking after our customers and delivering growth in our core markets.”

Zurich’s latest streamlining comes after it sold its UK pensions and savings business to Lloyds Banking Group in October.

That move saw Lloyds’s Scottish Widows subsidiary pick up 500,000 customers.

Zurich’s UK chief executive Tulsi Naidu, said: “Endsleigh will be part of a well-respected and successful broker business, and will be in very good hands.

“This is a positive transaction for all parties, including Endsleigh’s people and customers, and is a clear demonstration of how we are continuing to simplify our organisation and optimise our portfolio.”