Bank shelves sale of insurance division
The Royal Bank of Scotland (RBS) has shelved plans to sell RBS Insurance after failing to attract a suitable offer.
Group CEO Stephen Hester says a sale on terms currently available “would destroy value for RBS shareholders”. He said RBS Insurance is a well-run business that will help return the group to “stand-alone strength”.
RBS was the subject of a £20 billion ($44 billion) government bailout in November. A number of major international insurers were linked to negotiations for the insurance division but many later withdrew. RBS values the insurance division at around £7 billion ($15 billion).
Group CEO Stephen Hester says a sale on terms currently available “would destroy value for RBS shareholders”. He said RBS Insurance is a well-run business that will help return the group to “stand-alone strength”.
RBS was the subject of a £20 billion ($44 billion) government bailout in November. A number of major international insurers were linked to negotiations for the insurance division but many later withdrew. RBS values the insurance division at around £7 billion ($15 billion).