Insurance & Investment
Our Products and Markets
We operate a multi-channel, multi-brand model. Low cost access to HBOS Retail customers is a core strength of our operating model.
Investment Business
Our Investment Business focuses on the manufacture and distribution of individual investment funds, bonds and pensions business. We also offer mortgage related protection but do not operate in the wider protection market. This business mix covers over 75% of the UK life, pensions and investment market. We choose not to actively market annuity business given the longevity risk and capital intensity of these products. The UK investment markets in which we operate offer good long term growth prospects. This reflects the supportive demographic trends and increasing personal wealth. We are well placed to leverage these supporting fundamentals using our multi-channel, multi-brand approach.
We have three major distribution channels: Bancassurance, Intermediary and Wealth Management. We have by far the largest Bancassurance channel in the UK, with Halifax branded business distributed principally through branch-based Personal Financial Advisers (‘PFAs’) and more complex business through Bank of Scotland Investment Service (‘BoSIS’) Client Managers. Clerical Medical branded products are sold through the intermediary channel. We also own 60% of St James’s Place (‘SJP’), which is a leading provider, adviser and distributor marketing the Wealth Management sector.
General Insurance
Our General Insurance business focuses on buildings and contents household insurance, repayment insurance and motor insurance. These products cover around 50% of the UK general insurance market by sales. The other sectors, primarily commercial lines, do not currently offer attractive risk/reward opportunities. The household insurance market is an attractive growth opportunity for HBOS given our market leading position in the UK mortgage market. Household insurance is sold principally under the Halifax brand through our Retail branch network. Increasingly, however, sales are being made via e-commerce and telephone channels and through the intermediary market.
There are two major distribution routes for repayment insurance; the Retail branch network and third party relationships. The esure joint venture underwrites and distributes all of the Group’s motor insurance business under the esure, Sheilas’ Wheels, Halifax, Sainsbury’s Bank and First Alternative brands.