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!
Insurance industry 'can stay competitive'
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UK banks challenge PPI rules
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Tesco looks to expand financial division
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Why did it take so long to sort out Equitable Life compensation?
Yesterday's news that the UK government is on the verge of announcing a £1.5 billion compensation package for those who lost money in the Equitable Life collapse has taken 13 years to come through. It is believed that £1 billion will be made available immediately with a further £500 million put aside to cover those who lost money on with-profits investment. But why has it taken 13 years for t...Read More
Competition Commission seeks to increase PPI availability
The Competition Commission has today issued a ruling on payment protection insurance (PPI) and its availability when acquiring personal loans, mortgages and credit cards. Initially there had been moves to ban PPI at the point-of-sale for the above financial instruments and allow customers to shop around for the best PPI option available. However, Barclays Bank took the issue to court and the Compe...Read More