Bank set to keep RBSI, according to the Sunday Times.
The Royal Bank of Scotland is set to scrap the auction for its insurance business, RBSI, according to the Sunday Times.
The paper said the bank has raised close to £6bn through the sale of risky loans, and could therefore call off the sale of the division, which includes Direct Line and Churchill.
It is now believed RBS will accept no less than the £7bn price tag it had originally placed on RBSI.
American insurer Allstate is believed to be the only serious bidder left in the auction, however its bid two weeks ago is thought to have fallen at least £1bn short of the asking price.