Bank may abandon sale of insurance division
The Royal Bank of Scotland (RBS) may be forced to drop plans to offload its £7 billion ($15 billion) UK insurance division.
Final offers for the insurance division closed on Friday, a few days after the bank announced plans to sell its 50% shareholding in Tesco Personal Finance to retailer Tesco for £950 million ($2 billion).
UK media reports suggest the deal is a sign that waning interest from potential buyers of the insurance division is forcing the bank to consider alternative sources of funds.
The bank is trying to improve its liquidity following last year’s £56 billion ($117 billion) takeover of Dutch rival ABN Amro.
Major insurers AIG, Berkshire Hathaway and Zurich have all pulled out of the bidding for the insurance assets in the past few months. Allianz and US insurers Allstate and Travelers are understood to still be interested.
Final offers for the insurance division closed on Friday, a few days after the bank announced plans to sell its 50% shareholding in Tesco Personal Finance to retailer Tesco for £950 million ($2 billion).
UK media reports suggest the deal is a sign that waning interest from potential buyers of the insurance division is forcing the bank to consider alternative sources of funds.
The bank is trying to improve its liquidity following last year’s £56 billion ($117 billion) takeover of Dutch rival ABN Amro.
Major insurers AIG, Berkshire Hathaway and Zurich have all pulled out of the bidding for the insurance assets in the past few months. Allianz and US insurers Allstate and Travelers are understood to still be interested.