Bank woes will not affect sale, says RBS

Speculation surrounded the sale of Royal Bank of Scotland Insurance this week as the value of its parent bank plummeted to £4.5bn, despite a second injection of public cash.

The bank insisted its insurance division was still for sale, although market sources speculated that private equity houses were struggling to raise the cash.

Patrick Snowball, the former Norwich Union boss who confirmed his link with private equity bidders BC Partners and Apollo Management last week, refused to comment further.

An announcement on the future of the insurer, the UK’s third largest, is expected in February when the bank holds its annual general meeting.