The Royal Bank of Scotland (RBS) will probably be forced to sell its personal lines insurance operations as a condition of the bank’s hefty state bailout.

European Union competition commissioner Neelie Kroes has focused on the sale of RBS insurance assets at the same time as the UK Treasury has decided to peel back its exposure to wholesale banking. The bank needed a £20 billion ($37 billion) rescue package from the UK Government last year.

An agreement over what to do with the assets is expected by the end of this week as officials of the UK Treasury and EU continue discussions in Brussels.

RBS is the owner of insurance firms Direct Line and Churchill, which are major players in the UK home and motor insurance markets. The value of the assets is estimated at more than £5 billion ($9 billion).

RBS is likely to be a reluctant vendor of the insurance businesses, after Group CEO Stephen Hester earlier described RBS Insurance as a well-run business that will help return the group to regain “stand-alone strength”.