A MORECAMBE-based company which shed 155 jobs last year has struck a deal which should stop further redundancies.

AXA Direct personal lines insur-ance has agreed in principal that motoring giant the RAC will take-over its motoring services.

The company employs 140 people locally - but in three weeks time all of the AXA Direct employees who carry out new business, renewal and joint venture work will transfer to work under the RAC Insure brand.

AXA will retain a number of employees in its Morecambe custmer service centre call centre responsible for household claims.

Amicus, the UK's largest private sector union, has welcomed the news and says it has had assurances from the RAC that there will be no redundancies.

The union's regional officer Hugh Jones-Glass says AXA was due to make a number of redundancies at the Morecambe site earlier this month but, following the change in ownership, that will no longer happen.

"What's more, certain elements of AXA Direct, which were out sourced to Pune in India, will revert back to the UK once the RAC has officially taken over," he adds.

Andy Harrison, Chief Executive of RAC plc says: "This deal marks an important step in the development of the RAC financial services strategy. Our new colleagues in Morecambe will play an important part in ensuring the successful transition of the business."

This deal also marks the conclusion of a joint venture under the RAC Insure brand which was established by AXA and RAC in 2002.