Junction signs up to new five-year deal with Post Office

Junction, the UK's leading affinity insurance specialist and part of the BGL Group, has entered into a new exclusive five-year contract with Post Office Financial Services to provide Home and Motor Insurance.

This new arrangement further strengthens the long-term relationship between Junction and the Post Office. Since the partnership first launched in 2004, the Post Office has become one of the fastest growing insurance specialists in the affinity market with 700,000 home and motor policies in force.

The new deal will see Junction and Post Office Financial Services jointly develop acquisition and retention strategies, including targeted marketing, in order to release the full potential of the partnership.

Junction will continue to use its specially-selected expert panel of insurers, and economies of scale, to drive value for the partnership through to 2014.

Peter Thompson, Managing Director for Junction, said: "We are delighted with the new arrangement which will help further build the Post Office's role as one of the strongest providers in the Personal Lines general insurance business. By sharing risk and reward, this new arrangement will ensure we can deliver significant return for the Post Office insurance operation. We will continue to focus on the Post Office's major strengths of its brand and unrivalled branch network, while utilising the expertise of our own contact centres."

Patrick Waldron, Chief Executive of Post Office Financial Services, said: "Our partnership with Junction has already proved very successful in building our motor and home insurance business and we look forward to working together to develop the business and grow our book even further."