M&S strikes deal to widen financial services

Marks & Spencer is linking with Royal & Sun Alliance to extend its range of financial services.

It is believed M&S has struck a deal to launch an M&S-branded travel insurance policy next year.

M&S is also considering household insurance and a medical plan to sit alongside its current financial services range of loans, savings plans and life assurance.

A spokesman for M&S Financial Services says: “We are looking at a wide range of options, some relate to new areas and some involve expansion of our product range. If we did something it would not be this side of the new year.”

Earlier this month, M&S reported a 43 per cent slump in half-year pre-tax profits to &£192.8m. Sales slipped three per cent to &£3.7bn.

Over the same period, Marks & Spencer Financial Services increased its profits by three per cent to &£46.1bn. The company has launched a trial of financial services centres in two stores (MW November 11).

Royal & Sun Alliance provides Boots with its travel insurance services and medical plan helpdesk.