Royal Bank of Scotland to close half of its insurance offices
In a rather disappointing and surprise move it has been announced that Royal Bank of Scotland will be closing half of its insurance offices with Glasgow, Peterborough and Bristol earmarked for closure. This will result in well over 1000 jobs being lost amid signs that the company is looking to trim down its insurance operations, which include Churchill and Direct Line, ahead of a forced sale by the European Commission.
The company has already tried unsuccessfully to auction the two main insurance divisions although due to the fact that the UK government stepped forward with significant taxpayer backing it is now being forced to push these two operations towards new owners. When you consider that Churchill and Direct Line have been two of the most successful subsidiaries of Royal Bank of Scotland it seems rather bizarre that the company is being forced to sell the crown jewels to pay down debt and abide by EU state funding regulations.
There will no doubt be a number of competitors already looking over the books of these two operations which are two of the best known in the UK and two of the most successful.
UK government criticised over Equitable Life
The UK government has come under fierce criticism with regards to the Equitable Life saga which the High Court now believes was the subject of inadequate regulatory oversight for more than 10 years. Equitable Life was forced to close its doors to new business back in 2000 after it was revealed that the company was unable to pay out on guaranteed annuities which had been written many years before.<...Read More
Could you handle a large vet bill?
While the UK has for many years been a country of pet lovers, could you handle a significant vet bill in the event that your pet needed treatment?
This is a question which many pet owners in the UK should be asking themselves and whether in fact they should be considering pet insurance plans. As with so many other areas of our financial lives it can often be easiest to ignore a pote...
Royal Bank of Scotland set to be tested on insurance division sale
Despite rumours at the Royal Bank of Scotland, which is now majority owned by the UK government, is looking to cancel the ongoing sale of its £7 billion insurance division there are suggestions of a late entry into the sales process. Private equity giant Apollo Management and BC Partners are rumoured to be set to mount a late joint bid for the £7 billion division which may test the nerve of the...Read More
With profits bond holders feeling the pain
For many years the with profits bond market has been a godsend for investors in the UK, offering the opportunity to smooth out the ups and downs of the UK investment markets and ultimately crystallise a decent return at the end. However, while the likes of Engage Mutual and National Provident Life have already confirmed that terminal bonuses will be reduced to 0% we have today seen Phoenix join th...Read More
UK insurance rates are set to soar in coming years
While the banking industry is under serious pressure from the government, the insurance sector is sure to come under close scrutiny over the next couple of years. It is no surprise that insurance companies have seen a major reduction in their incomes in light of the economic slowdown and stock market turmoil, and this reduced income will need to be covered by increased premiums.