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.
Legal & General cut terminal bonus rates
In a move which was to be expected but is still very painful after the introduction of the with-profits exit fee adjustments, it has been revealed that Legal & General will be cutting terminal bonus rates on with profits funds by between 5 and 9 percent as a consequence of the fall in investment markets. It seems that after a period of calm reflection the insurance industry is now waking...
£2bn bank charge claim back on cards
A pot of £2.12 billion is waiting to be claimed by consumers who have been charged by credit card issuers.According to uSwitch, 18.96 million British consumers has been charged a total of £4 billion in bank charges and more than half have not claimed their money back.The price comparison site estimates that 52 per cent of customers have not reclaimed money charged by their banks and credit card...Read More
Land Of Leather Hit With Massive Fine
In a move which is as much as shot across the bows of the sector as a direct hit at Land Of Leather, the company has been hit with a £224,000 fine for potentially mis-selling up to 58,000 cases of Payment Protection Insurance (PPI). Even though the headlines are not as bad as they seem, the underlying message is loud and clear. While the figure of 58,000 was mentioned, this is not the actuall...Read More
Now the insurance market is suffering
As we suggested some time ago it looks as though it is the turn of the insurance sector to suffer from the fall in investment markets around the world. While the Association of British Insurers has intervened to try and calm investor nerves in some ways this has only highlighted the issue further.
Even though there does not appear to be any immediate threat to insurers in the UK th...
Three-quarters of a million Brits commit travel insurance fraud
As many as three-quarters of a million Brits are making false travel insurance claims, with many failing to realise that they are committing fraud by doing so, according to research from Direct Line Travel Insurance.Research found that many travellers exaggerate or falsify their claims - 11 per cent confessed to increasing the value of their claim and five per cent admitted they added extra items....Read More