The Royal Bank of Scotland is seeking buyers for its insurance brands that include Direct Line, Churchill, Green Flag, NIG and Nat West Life.
Some of the investment banking industry's biggest players are trying to find a suitor for the insurance division, which is expected to fetch £8billion, with feasible buyers including AIG, Axa, Zurich and Allianz.
RBS, which says it has "no plans to dispose of Direct Line or Churchill", could use the funds as it attempts to seal a £50 billion takeover of bank ABN Amro.
To many it may seem curious that the bank is even thinking of disposing of a division that in the past has been a huge generator of profits and cash for the bank. Despite massive advertising, some brands are finding competition much tougher than in the past. Reports have suggested that the bank has been very unhappy that car ad home comparison sites - which compare price and product features - make it easy now for potential customers to see which provider really is the best for them. The public is confused by some 100 car and home insurance brands all claiming to be the cheapest.
Life insurance: News update: May 2007
