Mergers and acquisitions expected in the UK insurance sector
Over the last few days the ongoing dispute between Aviva and the RSA has dominated the headlines and many people believe that the insurance industry is very much primed for a number of mergers and acquisitions in the short to medium term. Royal Bank of Scotland is already under pressure from the European Union to dispose of its Direct Line and Churchill insurance operations in the short to medium term. These operations are certain to attract the attention of insurers in the UK and while we are unlikely to see any aggressive bidding due to the economic environment there is no doubt there will be a number of parties interested.
This is just the tip of the iceberg with regards to the UK insurance sector where the Resolution Group is planning to create a business worth in excess of £10 billion. We could also see some of the major insurance companies in the UK looking to merge their operations as a means of streamlining the cost for the future and enabling them to focus on new markets and new opportunities in the medium to longer term. The markets are currently awash with rumours and counter rumours with some very interesting suggestions in the pipeline!
Aviva setback as further legal challenges materialise
Insurance giant Aviva has received a setback in its three-year battle to pay out orphan funds to shareholders, policyholders and the company itself. The original £1 billion offer from a £4.2 billion fund has since been reduced to £500 million after the fund in question fell in value to just over £1 billion. However, last week saw what many believe was the final ruling in this ongoing saga but...Read More
Lloyds Bank under fire over PPI legal loophole
A financial loophole allegedly used by Lloyds Banking Group, has allowed tens of millions of pounds to be short-changed from PPI claimants.
A recent investigation revealed a little-known regulatory provision known as ‘alternative redress’ has been adopted by the bank, assuming those affected by PPI would have bought a cheaper policy instead.
Most recently, Read More
Life insurance costs 'could fall'
Life insurance costs could drop "dramatically" over the years ahead as conditions arise to make policies more affordable.It has been claimed that medical improvements and increased longevity will make life insurance far cheaper for people to purchase.A spokesperson for Libra Financial Planning explained: "The cost of life insurance seems to be coming down dramatically because it would seem that pe...Read More
Life insurance shortfall revealed by Post Office
Around 75 per cent of people do not have life insurance, the Post Office said today.The organisation also released figures showing that the average Briton owns assets of £350,000 - around twice the level of the typical life insurance policy.When people who had not taken out the cover were asked why, one quarter said they could not afford it, while a further 18 per cent said that they did not thin...Read More
Brits are car insurance deal detectives
The results of new research indicate that most Brits are bargain hunters when it comes to choosing a suitable car insurance deal.A study conducted by the Fair Investment Company 57 per cent of those UK motorists quizzed named price as the most important element of securing cover on their vehicle.The level of cover was deemed much less important, with only 19 per cent viewing it as the crucial aspe...Read More