Insurers show interest in RBS and Lloyds asset sale

by Gill Montia

Story link: Insurers show interest in RBS and Lloyds asset sale

According to a BBC report, insurers Allianz, Generali and Zurich could show an interest in branch networks to be sold by Royal Bank of Scotland (RBS) and Lloyds Banking Group.

Both banks are to receive further huge bailouts from the Government: £33.5 billion for RBS and £5.7 billion for Lloyds, the latter taking the form of shares in a proposed £13.5 billion right issue.

In addition, both groups will be broken up to comply with EU competition rules.

Chancellor of the Exchequer Alistair Darling has already announced that he aims to create three new High Street banking chains that focus on the savings and mortgage markets.

RBS looks set to sell 318 branches across the UK, including its NatWest brand in Scotland.

The group’s insurance business, Global Merchant Services and RBS Sempra Commodities units will also be auctioned off, as will its card payment business.

Lloyds will sell at least 600 branches: expected disposals include Lloyds TSB in Scotland, the group’s Cheltenham & Gloucester mortgage lending business, and Intelligent Finance.

Large established UK headquartered financial institutions will be excluded from the bidding.