Transfer is one possible option as part of restructuring of insurance division
The Royal Bank of Scotland is considering combining the various units of its insurance division, RBS Insurance, using a so-called Part VII transfer.
But Insurance Times understands the move is being considered to improve the division’s capital efficiency ahead of the implementation of the European Commission’s Solvency II directive, rather than to prepare it for sale.
The European Commission has said RBS must divest RBS Insurance by 2013 as one of the conditions of its rescue by the UK government in 2008.
The restructuring of RBS Insurance is understood to be at its early stages, and the company has made no final decision on whether or how a Part VII transfer would be used to merge the businesses. It is being considered as one of a number of options.