Ex-Tory treasurer supporting bid for Co-op general insurance business

Business deal work group people

An investment vehicle with backing from financiers including the former Conservative Party Treasurer Michael Spencer, is preparing a £600m bid for the Co-operative Group’s general insurance arm, according to a report by Sky News.

Tungsten Corporation, which is led by Edmund Truell, founder of private equity company Duke Street Capital, is yet to make a formal approach to the Co-op, but is understood to have made an informal expression of interest in the acquiring the general insurance business last year.

On Tuesday, Insurance Times reported the sale of the Co-op’s life insurance and asset management arm to Royal London, another mutual, for £219m.

The Co-op is exploring a sale of its insurance business as it attempts to raise sufficient capital to go ahead with a planned takeover of 632 Lloyds Banking Group branches.

The Sky report added that the Co-op is close to appointing bankers to work on the sale of its remaining insurance operations, with Deutsche Bank and one other firm likely to work on any deal.