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.
Convertible term assurance policies are similar to term assurance policies, as they have a known level of cover that will pay out in the event of death within a set time. However they also come with the option to "convert". This conversion option allows you to adapt your plan if your circumstances change. You can convert it to either an endowment assurance policy (provides a cash benefit when...Read More
Competition Commission seeks to increase PPI availability
The Competition Commission has today issued a ruling on payment protection insurance (PPI) and its availability when acquiring personal loans, mortgages and credit cards. Initially there had been moves to ban PPI at the point-of-sale for the above financial instruments and allow customers to shop around for the best PPI option available. However, Barclays Bank took the issue to court and the Compe...Read More
Flood warning made by Zurich
Two-thirds of Britons are not prepared for their home being affected by floods, Zurich has found.New research from the home insurance provider shows that 44 per cent would also not know whether or not their insurance policy covers them for extreme weather.Zurich also said that 62 per cent of people feel that they are at increasing risk of their home being flooded, due to climate change.The researc...Read More
Don't go off piste when it comes to insurance
As many as one in four Brits will hit the slopes without the right travel insurance this year, according to esure.One in four people (27 per cent) were found to be labouring under the misconception that winter sports were always included as standard - even though this is rarely the case - and many people may unknowingly be skiing without the cover they need, leaving themselves open to any medical...Read More
Does the insurance sector need a cash injection?
As the headlines point to a massive bailout of the UK banking sector there are some in the market who believe that a similar solution may be required for the insurance sector. Unknown to many consumers in the UK, insurance companies invest their premium income across a massive range of investment groups and are sure to have taken large hits to their asset bases like all other UK financial compani...Read More