RBS seeking insurance offers soon

RUMOUR OF THE DAY

ROYAL Bank of Scotland wants second-round offers for its insurance business to be submitted by the end of this month, sources have claimed

Four suitors, including Zurich Financial, put in informal first-round bids for the business, which includes the Direct Line and Churchill brands, by early June, people familiar with the matter said.

The other companies were US insurers Allstate and Travelers and Germany's Allianz. The business is expected to fetch £5-7 billion.

It is understood RBS will take the bids in at the end of July, then is expected to decide – depending on the price offered and the deliverability of financing – whether to go ahead with a sale and possibly enter exclusive talks with a preferred bidder, the sources said. The bank declined to comment.