Direct Line, Churchill and NIG up for sale again
Royal Bank of Scotland’s (RBS) insurance businesses will almost certainly be sold off as the Government proceeds with plans to create three new High Street retail banking chains from the part nationalised RBS and Lloyds Banking Group, and the wholly state owned Northern Rock.
Ministers are putting the final touches to the proposals which could take five years to implement and involve the mass sale of assets.
The move should placate European Competition Commissioner, Neelie Kroes, and allow the Treasury to recoup some of the money used to prop up the ailing institutions.
The sale of RBS’s insurance operations, which include Direct Line, Churchill, Green Flag and NIG, was first mooted last year, before the departure of the bank’s disgraced chief executive, Sir Fred Goodwin.
However, the £7 billion price tag proved too much for rival insurers.
Private equity firms CVC Capital, Apollo Management and BC Partners were the last potential bidders to show any real interest prior to the sale being abandoned last December.
Category: DirectLine Insurance News, Insurance News, Royal Bank of Scotland News
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