Bank expects offes from major insurers.

RBSI is expected to receive several offers from potential suitors including Zurich, AIG and Generali, after putting its £5bn GWP insurance division up for sale, last week.

On Friday Generali, the fourth largest insurer in Europe, said it would be interested in making an offer for RBSI’s two largest brands, Direct Line and Churchill.

However, although analysts have said that a trade buyer was the most likely outcome, market sources suggest the bank could pursue other options.

A senior source at a major insurer said: “I’m not sure if it will sell. Given the growth of aggregators, you can argue that [RBSI’s] heyday has gone. A private equity stake seems more likely at this point.”

The source added that RBSI was unlikely to sell broker-only insurer NIG – heavily linked with AIG – until it had received offers for other parts of the business.

Goldman Sachs and Merrill Lynch have been appointed to manage the sale. They will distribute sale documents to potential buyers in the coming weeks.

‘ Who’s set to buy RBSI, page 10