The supermarket giant is to begin selling life cover products from Friends Provident through its stores and website.
Tesco will soon be offering life insurance products from Friends Provident after the two companies signed an agreement.
The new cover options may be available as early as the end of the year, according to Friends Provident chief executive Trevor Matthews. "This is very early days. We don't expect any new business to be cast through the door for this until the end of the year because there's a lot of preparation involved," he said.
Initially the new products will be sold online and "in due course" will be available in Tesco high street stores. Mr Matthews hopes to add to Tesco's estimated 200,000 personal finance customers.
The news provided a boost for Friends Provident, which posted a 40 percent annual fall in life and pensions sales for the first quarter. The first three months of the year saw the company sell £147.9 million worth of the products, down from £247.1 million during the same period 12 a year earlier.
Tesco has been one of the few firms that have continued to grow despite the credit crunch, revealing record-breaking profits of more than £3 billion for the year ending February 28th. Reports suggest that the company is now set to expand its financial services business.
