RBS rumoured to talking to CVC capital on insurance sale

by Gill Montia

Story link: RBS rumoured to talking to CVC capital on insurance sale

Royal Bank of Scotland (RBS) is rumoured to be in talks with Luxembourg-based private equity firm, CVC Capital Partners, over the sale of its insurance business.

Both Reuters and The Times have reported that the bank is understood to be negotiating the sale of its Direct Line and Churchill brands and CVC is thought to be interested in taking a controlling stake.

RBS’s insurance units, which also include Privilege, UKI and NIG, were put up for sale back in the summer, when they were valued at around £7 billion.

Potential bidders included Zurich and US insurance group, Allstate.

This week’s £20 billion Government-backed rescue of RBS will have moved the sale of the divisions high up the agenda.

Sadly, former RBS chief executive, Sir Fred Goodwin, was always strongly opposed to a fire sale of the business, which holds around 30% of the UK’s motor insurance market.