Zurich withdraws from RBS Insurance bidding

by Gill Montia

Story link: Zurich withdraws from RBS Insurance bidding

Zurich Financial Services Group has confirmed that it is withdrawing from any further discussion with Royal Bank of Scotland (RBS) over the acquisition of the latter’s insurance business.

The move has raised questions over the viability of RBS’s proposed sale of the division, which includes Churchill, Direct Line, Privilege, UKI and NIG.

The brands currently hold one-third of the UK motor insurance market.

Other potential buyers to have lost interest in RBS Insurance include Generali of Italy, Ping An of China and Warren Buffett’s Berkshire Hathaway.

The group’s insurance division is valued at up to £7 billion and Zurich says it has made its decision after carrying out a detailed review of the business.

It is understood that Allianz and both Allstate and Travelers of the US remain in the bidding but the news of Zurich’s withdrawal will lead to further speculation that the division could be broken up.