Buyers line up for RBSI
RBS has circulated a sales memorandum to potential buyers of its insurance arm, which includes the brands Direct Line and Churchill and has been valued up to £7bn. The bank is thought to be in talks with between eight and ten potential buyers, who have been given until May 28 to respond to the memorandum.
Marsh/Capita deal delayed
The £200m outsourcing deal between Marsh UK and Capita is not expected to go ahead until the end of next month after originally being due to complete on 1 May. The number of back office staff expected to transfer to Capita at Marsh UK’s Norwich operation as part of the 10 year deal has also reduced.
Ian Clarke, UK transformation director at Marsh, said the deal is likely to be completed four to six weeks later than he had originally hoped.
Credit hire agreement
Insurers have reached an agreement to increase the fees they pay to credit hire agencies by 3.5%. The ABI’s new General Terms of Agreement, which has been under review since July, will come into effect from 1 June. Credit hire costs insurers over £1bn per year.