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.
Ping An Drops Out Of Auction For RBS Insurance Division
Ping An, the Chinese insurer, has dropped out of the bidding for the Royal Bank of Scotland insurance arm which is up for sale at £7 billion. The division, which includes Direct Line, Churchill and Privilege has been the centre of much interest but a number of potential buyers have pulled out of late. So will the sale still proceed?
While at this moment in time there are still 5...
Foreign car claims driven up
The number of insurance claims made against foreign vehicles by motorists in the UK has risen by 15 per cent over the last two years, according to new research.The Motor Insurers Bureau (MIB) reports that the amount of car insurance claims against cars from abroad now stands at 19,621, while the figure was just 17,032 two years ago.Following this news, uSwitch.com has said that it is increasingly...Read More
Barclays Bank turns down UK government insurance scheme
As expected, after a green light from the Financial Services Authority, Barclays Bank has today refused to join the UK government's toxic asset insurance scheme. Citing the massive charges levied against banks in the scheme, Barclays is more than prepared to go it alone after receiving a clean bill of health from the FSA.
While there is no doubt that Barclays Bank, much like the vas...
Lloyds bank in dispute with the Treasury
As we approach D-Day for the Lloyds bank rights issue, it would appear that the company is currently in dispute with the Treasury over the its participation in the government's asset protection scheme. The whole point of the proposed £25 billion pounds rights issue is so that the company can improve its balance sheet and also protect the assets which were going to be injected into the asset prote...Read More
With Profits Policy Holders Vent Their Anger
For many years the with profit insurance policy was seen by many as a means of saving for the future with funds invested in the economy and additional profits added each and every year - profits which could not be reclaimed by the insurance companies. However, a report from Money Management has shown that with profits investments are no where near as lucrative as many people believe.