HSBC to enter partnership with Norwich Union

British banking giant HSBC has said it is teaming up with Norwich Union in an attempt to improve its lacklustre performance in the insurance sector.

The planned joint venture will see Norwich Union underwrite and distribute general insurance products to HSBC's 10.2 million customers in the UK.

The move extends a 23-year underwriting relationship between the firms, as HSBC currently distributes protection, home, travel and car insurance products created by Norwich Union. The venture will deepen this tie-up, with the aim of making HSBC Insurance a top-10 player in the UK general insurance industry.

Dyfrig John, chief executive of HSBC Bank, said: "It would be fair to say that HSBC has historically punched below its weight in insurance but we have shown before that our customers want to stay with us if we offer well serviced, good value products."