Royal Bank of Scotland is to buy Churchill Insurance from current owner Credit Suisse for £1.1bn in ...
Royal Bank of Scotland is to buy Churchill Insurance from current owner Credit Suisse for £1.1bn in cash, creating the country's third largest general insurer.
It could generate considerable cross-selling opportunities for the Scottish bank ahead of the implementation of depolarisation and moves to bring the general insurance market under the umbrella of FSA regulation.
RBS chief executive Fred Goodwin says that Churchill "will fit well alongside Direct Line", and will balance DL's strength in motor vehicle insurance with similar strength in the home insurance market.
Churchill's ownership of NIG also opens up more sales opportunities in the SME business insurance market – an area that the bank already well known to RBS through its share of the Scottish business loan market.
The Churchill and Direct Line brands will be retained, but cost savings will be made by "combining IT, claims and central functions" Goodwin adds.
"This acquisition will make RBS the third largest general insurer in the UK, and an effective competitor with a strong, efficient, scaleable platform for growth," Goodwin says.
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