Speculation over potential bidders for Direct Line

Warren Buffett’s Berkshire Hathaway is a potential bidder for Royal Bank of Scotland (RBS) insurance business, including Direct Line and Churchill, the Sunday Times reports.

According to the report, RBS last week kicked off the process of appointing advisers to review the options for its insurance business, including a possible sale.

An IPO has been the preferred option previously, it is understood.

US insurer Allstate is also among a long list of bidders that have indicated interest, the paper reports, without giving any details of sources.

Private Equity firm CVC offered £4.5bn for Direct Line in 2009. Berkshire Hathaway and Allstate were involved in that process, as were Generali of Italy and the Swiss insurance giant Zurich, the Sunday Times said.