Royal Bank of Scotland on the verge of Direct Line sale
Despite the fact that Royal Bank of Scotland had initially wanted to sell its Direct Line insurance division in 2012 via an IPO it is believed the company is on the verge of announcing a trade sale very soon. There is speculation that figures such as Warren Buffett, the investment guru, have already stepped forward to show their interest in what is a quality operation.
It seems rather strange that Royal Bank of Scotland is effectively being forced to sell the family silver because of the way it was rescued by the UK government. However, these are the rules of the EU and the bank and the UK government have been forced to abide by them. There is no doubt that many interested parties will step forward in the knowledge that the company is a "forced seller" and cannot therefore in theory hold on for the best price.
When you also consider the company is also being forced to sell its Churchill Insurance operation it is highly likely that Royal Bank of Scotland will exit this particular area of business in the future. This is a company which is slowly but surely being stripped of its former jewels as a consequence of the deeply damaging credit crunch.
UK motor insurance premiums increase yet again
The AA insurance has today commented upon the state of the UK motor insurance market with a suggestion that the average comprehensive motor insurance policy is now costing in excess of £1000 a year. This is an increase of around 20% on the 2008 figure and is predominantly because of fraudulent claims and the damage caused by uninsured drivers in the UK. All in all it is believed that UK motori...Read More
Legal & General warns over allowing staff into homes
Allowing home help such as cleaners, gardeners and odd job men, into your house can pose a significant risk to security, a home insurance company has warned. Legal & General's survey of UK spending habits found that among the 41 per cent UK households which employ help, some 17 per cent use a cleaner. Meanwhile, seven per cent pay someone to help with their ironing, while 17 per cent delegate thei...Read More
UK government to challenge EU over insurance rules
The UK government is set to challenge the EU commission head-on with regards to solvency II rules which are set to be introduced to the European marketplace in the short term. The UK government believes that these "over conservative" solvency rules will see UK insurance companies having to shore up their reserves by up to £50 billion. There will obviously be a cost to this additional reserve requ...Read More
Don't be "hoodwinked" when it comes to mobile phone insurance, says Biba
People who upgrade their mobile phones often don't realise that their existing mobile phone insurance will not cover their new phone, according to Peter Staddon of the British Insurance Brokers' Association (Biba). Mr Staddon urged people to be better educated when it came to their insurance policies, giving the example of mobile phone insurance, where often when people take out a policy at the po...Read More
Lloyds bank in talks to scale back asset protection plan participation
After yesterday's revelation that Lloyds bank failed a Financial Services Authority (FSA) stress-test, regarding its plans to withdraw from the UK government's asset protection scheme, directors have now put forward a scaled-down version of the scheme. It is believed that Lloyds bank directors are currently in talks with the UK Treasury regarding a possible reduction in the company's asset protect...Read More