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.
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...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
Car insurance premiums set to rise
A growing number of "crash for cash" scams in the UK and car insurance fraud have directly influenced the ever-growing rise in UK car insurance premiums which increased by 12% between January and June of 2010. This is the unseen cost of car insurance fraud and unfortunately it is something which law-abiding customers are being forced to cover. At a time when UK finances are literally being stretch...Read More
Aviva rejects approach from RSA
It has today been revealed by Sky news that UK insurance companies Aviva and RSA have been in communication regarding a potential sale of the Aviva general insurance division. It is believed that RSA made an offer of around £5 billion for the operation which was immediately rebuffed by Aviva. It is not clear why the approach was not publicised at the time, reported to have been last month, but th...Read More
Travel Insurance Warning As The Holiday Season Approaches
As we approach the peak of the holiday season many of the UKÃ¢â‚¬â„¢s consumer groups are warning travellers to ensure that they are fully covered when they go overseas, and know exactly what they can and cannot claim for. In these times of economic uncertainty it seems that more and more people are looking to reduce costs as much as possible, with travel insurance often top of the list...Read More