British insurer Royal & SunAlliance is set to dump its life insurance business and stick to general insurance. Financial services giant GE Capital is tipped to be the buyer, although Dutch insurer Aegon is also understood to be interested.

GE Capital has made several unsuccessful attempts to get into the British life and super market. R&SA, flush from a 22% increase in first-quarter profits, has decided on the relatively unusual course of concentrating on general insurance. CEO Bob Mendelsohn is refusing to confirm the sale rumours, although he has admitted the group is looking at ways to unlock the surplus cash represented by its British life business.