Standard Life secures RBS distribution deal
by Gill Montia
Story link: Standard Life secures RBS distribution deal
Standard Life has entered into a five-year platform distribution agreement with Royal Bank of Scotland (RBS). Under the deal, the insurer will deliver a range of RDR compliant investment solutions, which will be available to RBS, NatWest and Ulster Bank customers via the Standard Life wrap platform. From December, the platform will deliver investment solutions [...]
FSA’s RBS report considers role of institutional shareholders
by Gill Montia
Story link: FSA’s RBS report considers role of institutional shareholders
In its long-overdue report into the failure of Royal Bank of Scotland (RBS), the Financial Services Authority (FSA) comments on the role of shareholders in the bank’s disastrous acquisition of ABN AMRO. According to the regulator, RBS had the support of its institutional shareholders over its battle with Barclays for ownership of the Dutch bank, [...]
RBS consults on insurance business restructure
by Gill Montia
Story link: RBS consults on insurance business restructure
Royal Bank of Scotland (RBS) is consulting with potential advisers on the future of its insurance business, which includes Direct Line, Churchill, Green Flag and NIG. The outlook for the business has been uncertain for the past couple of years, the division having been put up for auction in 2008 with a price tag of [...]
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 [...]
Fortis tipped for Tesco insurance deal
by David Masters
Story link: Fortis tipped for Tesco insurance deal
Belgium-based Fortis has emerged as leader of the pack of insurers vying for the contract to manage Tesco’s motor and home insurance businesses. According to the Telegraph, Fortis is in ‘advanced’ talks to agree an insurance partnership with the UK’s largest retailer. Tesco admitted earlier this week that it is reviewing its long-standing insurance arrangement [...]
NIG to close eight offices; job losses anticipated
by Gill Montia
Story link: NIG to close eight offices; job losses anticipated
NIG has announced plans to close eight of its 18 offices. The restructure should be completed by the first quarter of 2010 and will involve job losses among the insurer’s 900 staff. The property and casualty insurer forms part of the Royal Bank of Scotland (RBS) group, which is in the process of selling its [...]
L&G made demands for resignation of RBS chiefs
by Gill Montia
Story link: L&G made demands for resignation of RBS chiefs
The chief executive of Legal & General Investment Management (LGIM) has revealed that his company had demanded the resignations of Royal Bank of Scotland (RBS) chiefs as long ago as May of last year. Appearing before a Treasury Select Committee yesterday, Peter Chambers reported that LGIM had called for the bank’s chairman, Sir Tom McKillop, [...]
Credit insurance difficulties threaten banks’ lending
by Gill Montia
Story link: Credit insurance difficulties threaten banks’ lending
Barclays and Royal Bank of Scotland are predicting trouble ahead for UK businesses as credit insurance becomes more difficult to obtain. According to a report in The Times, representatives of the banks appeared before the Department for Business Select Committee yesterday and suggested that problems with trade credit insurance were preventing banks from lending to [...]
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 [...]
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 [...]
RBS holds out for full price on insurance business
by Gill Montia
Story link: RBS holds out for full price on insurance business
In a statement following Royal Bank of Scotland’s (RBS) successful fundraising (in the form of a £12 billion rights issue), the group’s chief executive, Sir Fred Goodwin, said that he is confident of getting a full price for the group’s insurance business. RBS was caught short when the credit squeeze turned into a crisis because [...]
Churchill and Direct Line bidders line up
by Gill Montia
Story link: Churchill and Direct Line bidders line up
Royal Bank of Scotland’s (RBS) auction of its insurance businesses, which include Churchill and Direct Line, is reported to have attracted seven bidders so far. The bank’s advisers, Goldman Sachs and Merrill Lynch, have excluded private equity firms from the sale, which is expected to raise around £6 billion. Zurich, Allianz and Generali of Italy [...]
Bankinter approaches RBS on sale of Linea Directa
by Gill Montia
Story link: Bankinter approaches RBS on sale of Linea Directa
Royal Bank of Scotland (RBS) is reported to have been approached by Bankinter of Spain about the sale of its stake in Linea Directa, the Spanish insurance business held as a 50/50 joint venture between both banks. RBS is auctioning its insurance operations in efforts to raise around £4 billion to improve its capital position. [...]
RBS considers sale of Direct Line and Churchill
by Gill Montia
Story link: RBS considers sale of Direct Line and Churchill
The future of Direct Line and Churchill hang in the balance as their owner, Royal Bank of Scotland (RBS), considers means of raising new capital. Last week, RBS shareholders were surprised and angered by reports that the bank was planning a deeply discounted rights issue. Only last month, RBS chief executive, Sir Fred Goodwin, strongly [...]
