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 insurer bonus rates slashed
Friends Provident has today announced a 20% reduction in with-profits payments as the insurance sector continues to feel the pain of the economic downturn around the world. While this move is no surprise and reflects the general conditions of the market it could severely handicap many who depend upon their insurance investments for their long-term financial well-being.
As an example...
Check your insurance, Brits driving to Ireland are advised
Despite the travellers from the UK are able to drive freely in the Republic of Ireland using a British driving license, those heading across the Irish Sea with their cars should check the content of their motor insurance policies before travelling, one provider has advised.AA Ireland spokesman Thomas Brosnan has reminded motorists to check the extent of their cover before heading to the country.Wh...Read More
Civil servant found guilty of car crash scam
As if we needed another reminder of the various insurance scams active in the UK at the moment, today saw a civil servant jailed for 4 1/2 years for his part in a £1.6 million "cash for crash" scam. Mohammed Patel, who worked at the Department of Work and Pensions, was found guilty of being part of a gang which staged road traffic accidents by breaking quickly and forcing cars behind them to cras...Read More
Brits urged to take action over mis-sold PPI
Britons who suspect that they have been mis-sold payment protection insurance (PPI) should act now to claim compensation, a consumer magazine has advised. According to new research conducted by Which?, over the last five years up to two million people who have been sold the cover are likely to find they will not be able to make a claim. This is because they fall foul of exclusions stipulated withi...Read More
Equitable Life competition scheme condemned
The Parliamentary Ombudsman has today issued a damning indictment of the U.K.'s proposed £400 million payout to Equitable Life suffers, many of whom lost their life savings during the company's near collapse back in 2000. The £400 million compensation scheme, yet to be rubberstamped by the government, equates to just £266 per policyholder despite the fact that a recent report suggested losses f...Read More