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!
Conservative Party's national insurance claims thrown into doubt
A report by economists working for the shadow Chancellor George Osborne in 2007 has cast doubt on Conservative Party accusations regarding an increase in national insurance and the impact this would have on the employment market. The Conservatives are claiming that a 1% increase in national insurance would lead to 57,000 job losses in the UK although using the formula from the 2007 report this cou...Read More
Legal and General shares hit by funding concerns
A report in today's Financial Times has upset investors in Legal and General with the shares falling to a ten-year low before recovering to close nearly 9% lower. The report in the Financial Times indicated the group was in talks with the FSA regarding an additional allocation of funds required to cover potential defaults on its bond portfolio.
The company has responded to the specu...
Government looking at raising national insurance
The UK government is rumoured to be looking at a potential rise in national insurance contributions to fund a guaranteed minimum level of care for the elderly in the UK. A Green Paper is to be released to the Houses of Parliament next week amid signs that politicians from all sides of the house are now gearing up for a general election. National insurance is one such tax which has crept higher and...Read More
Home insurance flood effort 'going well'
The government minister in charge of flood relief has received a progress report on the recovery effort from last summer's extreme weather.After speaking to the Association of British Insurers (ABI), John Healey said that home insurance firms' efforts were well on track.Three quarters of those forced into alternative accommodation thanks to flood damage to properties are expected to be back home b...Read More
Level term life assurance is seen as a ‘safe’ option. When you take out the policy you agree a term length with the insurance provider, as well as an amount you wish to have paid to your estate in the event that you die during the agreed term. In a sense it is a type of insurance you never want a payout from, but it also an extremely useful and simple way of providing your family with future f...Read More