Virgin's Branson Mulling U.S. P-C Operation

NU Online News Service, May 14, 12:24 a.m. EDT?Business tycoon Richard Branson's Virgin Group launched a budget-minded property-casualty insurance operation for the U.K this week and is considering doing the same for the United States, a spokesman said.[@@]

The company is promising that its products can save U.K. policyholders nearly half of their current premium costs.

Its new insurance products?including auto, home, travel and pet coverage?are being offered through Sir Richard's financial services operation unit called Virgin Money.

For now, the products will be offered first in the U.K., but Virgin Money spokesman Scott Mowbray told National Underwriter that Mr. Branson has his eyes set on branching out to the U.S. marketplace, as well. "Richard has indicated this week that he is actually looking at the U.S. marketplace quite seriously," Mr. Mowbray said. "We are looking for places that are perhaps underserved?where we can go in and make a real difference."

Mr. Branson said, in a statement, that his customers in the U.K. will be able to save up to 48 percent on Virgin's auto insurance and up to 40 percent on home insurance. The company can offer these savings through a combination of aggressive pricing and scrapping interest charges for monthly installments, according to the Virgin Money spokesman.

"This is the start of an exciting new chapter in Virgin Money's development," Mr. Branson stated. "There is nothing we love more at Virgin than improving the customer's lot and at the same time challenging existing providers. With our new package of insurance products, not only will customers save money on their premiums, they will benefit from multiple product discounts."

Mr. Branson's Virgin brand encompasses a variety of business organizations. Current business units include the Virgin Atlantic airline, Virgin Records, Virgin Mobile, Virgin Cola and Virgin Energy, as well as the chain of Virgin Megastores retail shops and Virgin financial services.

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Virgin's Branson Mulling U.S. P-C Operation

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