RBS still looking to sell insurance unit
Contrary to some reports in the press it has this evening been revealed that Royal Bank of Scotland is still looking to sell its insurance arm which has been up for sale for some months. There had been rumours that the sale had been pulled due to the government led bailout of industry but this would appear to be well wide of the mark. The insurance division had been expected to bring in around £7 billion but this valuation may well be revised due to current circumstances.
The fact that the Royal Bank of Scotland is still looking to dispose of this former central division of the company highlights the plight of the UK banking sector even after the multibillion pound government bailout. This also adds strength to the rumours of a credit crunch part two which could occur as early as the first quarter of 2009 unless we see a substantial recovery in business levels in the industry.
The next set of UK banking results should make interesting reading and possibly offer a pointer for the future direction of the UK economy. In many ways the recent relief in the sector has given way to pessimism for the future which is very difficult to predict.
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