Merger won't affect Halifa Halifax says its general insurance book is unlikely to be affected much by its proposed £26bn merger with the Bank of Scotland.

The UK's biggest household insurer suggested there would be few areas where the two companies' business would overlap.

“How we are branded has not yet been decided,” said a spokesman for Halifax. “We first need to see what conclusions are drawn from talks.”

A merger would enable Halifax to roll out its insurance products to the Scottish market, so far not reached by its branches.

The two combined companies will provide a rival to the UK's “big four” banks of Natwest, Barclays, Lloyds TSB and HSBC.

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