Zurich Looking at Acquiring RBS’ Insurance Arm
Zurich Financial Services is one of several companies looking to acquire Royal Bank of Scotland's insurance arm. RBS Insurance was put up for sale as part of the bank's plan to shore up its balance sheet, alongside a 12 billion pound ($24 billion) rights issue.
The insurer is an eye-catching asset is one of the most efficient players and home to attractive brands, including Direct Line and Churchill. It's expected to get between 6 billion and 7.5 billion pounds.
But financial pressures on a sector battered by the credit crunch, the ultra-competitive UK market and the sheer size of the business is likely to cool many suitors from going beyond the first round, due to close on May 28.
Likely bidders in the first round are Zurich, Generali and Allianz in Europe; Allstate,Travelers and AIG n the United States; and China's Ping An, according to people familiar with the situation.
Published on May 23, 2008
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