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!
Should Aviva have mentioned the RSA approach?
The management of Aviva is this weekend under immense pressure from leading shareholders over the non-disclosure of an approach by RSA and a potential £5 billion offer for the company's general insurance business. Many believe that this highly sensitive piece of information should have been released into the public domain instead of being brought to the attention of the market by the financial pr...Read More
Quinn Insurance still under pressure
Despite the fact that the regulator has performed something of a partial U-turn and will now allow Quinn Insurance, the troubled Irish insurance company, to partially re-enter the UK insurance market there are fears regarding those employed by the company. It seems inevitable there will be job cuts and this figure could be as high as 1,000 jobs if as expected the company is banned from further inv...Read More
UK taxpayers to make profit from asset protection scheme
The Asset Protection Agency, the agency in charge of the UK government's asset protection scheme, is confident that UK taxpayers could walk away with a profit from the scheme of anywhere between £5 billion and £6 billion. This is the scheme utilise by Lloyds bank and Royal Bank of Scotland which effectively insures their toxic assets and "puts a lid" on any potential liabilities in the future. I...Read More
UK motorists urged to extend car insurance when abroad
Motorists in the UK are being advised to ensure that they extend their car insurance premiums when travelling abroad.Many drivers decide not to increase their car insurance when travelling abroad, in the belief that their UK policies will adequately cover them in the event of any accident.However, Keith Maxwell, motor account manager for insurance firm More Than, has warned that this is not the ca...Read More
Why shopping around for your car insurance is vital!
As we covered in one of our recent articles on motor insurance, the AA reported a 7.2% increase in average car insurance premiums in the final quarter of 2009. However, the annual increase in car insurance premiums is well into double digits and there is serious concern that motorists will be hit with higher and higher premiums in the short to medium term. Many of us will have been with the sam...Read More