RBSI sets bidding deadline as interest wanes

by David Masters

Story link: RBSI sets bidding deadline as interest wanes

RBS has set the bidding deadline for RBSI, its £7 billion insurance business, as the end of this month.

RBSI is the biggest motor insurer in the UK, owning Direct Line and Churchill.

According to analysts, it is worth up to £8 billion, but is unlikely to sell for more than £6 billion due to difficult market conditions.

Italy-based Generali pulled out of the bidding race in May, prompting fears that interest in RBSI was declining.

AIG have also had to withdraw from bidding due to its heavy losses in the subprime mortgage crisis.

Berkshire Hathaway have had a £6 billion bid rejected, leaving just Zurich, Allianz, Travelers and Allstate as potential bidders.