CGNU, the UK's largest insurer has agreed to pay £172m ($242m) for Singapore-based DBS Group's insur...
CGNU, the UK's largest insurer has agreed to pay £172m ($242m) for Singapore-based DBS Group's insurance business and struck a 10-year bancassurance pact with south-east Asia's largest bank, according to a report in the FT this morning.
The UK insurer is acquiring the Insurance Corporation of Singapore (ICS), a life and general insurance business which DBS bought last year from the city-state's government. The bank will distribute CGNU products through its domestic branch network.
A major announcement is expected tomorrow from Gordon Brown, Chancellor of the Exchequer, and Paul O'Neill, his American counterpart, when they unveil the first shake-up of transatlantic double-taxation law in almost 30 years, the Times reports.
A new treaty that could benefit tens of thousands of British companies and has taken three years to negotiate, is apparently being rubber-stamped at a bilateral meeting in Downing Street this week.
The treaty is said to replace existing double-taxation arrangements, which have been in place since 1975, and will introduce a wide range of new exemptions on investment income, pensions schemes and capital gains.
Equitable Life is in trouble again and could be forced to pay £200 million in compensation after allegations that it mis-sold thousands of financial products to pensioners, the Times adds.
The firm told the Times yesterday that it has reserved £200 million to cover potential mis-selling claims from an estimated 15,000 policyholders who bought income-drawdown products - the alternative to annuities used to convert a pension fund into a retirement income.
There was also a warning yesterday from the Ernst & Young ITEM Club that the Bank of England must intervene on the currency markets to bring down the value of the pound to prevent a recession, the Independent reports.
Although the G8 summit discussions in Genoa went little further than to suggest the UK might need to devalue its currency, pressure is increasing on the UK government to align the British pound with European currencies.
Comments from Ernst & Young also follow those of Sushil Wadhwani, a member of the Monetary Policy Committee, who last week said the pound was overvalued by 10%. He suggests a more appropriate exchange rate would be DM2.8 to DM3.
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