Household is the mutual’s most profitable division
Legal & General has tabled a bid for the Co-operative Group’s household insurance book, according to reports.
Sky News reports that L&G is not interested in the mutual’s motor insurance book, an approach which is forcing the Co-op to consider dividing up the business.
Catalina Holdings and Anacap are also reported to be amongst the bidders for the Co-op’s general insurance operation.
And former RSA chief Andy Haste is rumoured to be working on a separate bid with private equity firm Advent International.
A Co-op spokesman said: “We do not comment on speculation. We will issue an update on the sales process as and when appropriate.” L&G declined to comment.
Household accounts about 28% of the Co-op’s book and is highly profitable. For the full year of 2012, the household business reported a combined operating ratio of 78.9% compared to a GI total COR of 110.9% after the group strengthened its motor reserves. In the first half of 2013 its group COR improved to 96.2%.
The Co-op is trying to raise £500m from selling off its GI and life insurance businesses to plug a £1.5bn black hole in the balance sheet of its bank.
It sold its life insurance arm to Royal London for £219m.
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