Winterthur, the insurance subsidiary of Credit Suisse Group, is selling its US operation, Republic, fuelling speculation that it is on the brink of selling its UK insurance arm, Churchill.
As reported last week by Insurance Times, Direct Line is trying to finalise its takeover of Churchill. The direct insurer has agreed a period of exclusivity on its negotiations, which are set to end shortly.
A source close to the deal said last week: "The nuts and bolts of the deal have been done already. The due diligence is the only thing holding up proceedings. But the period of exclusivity is coming to an end and the door will then be open for other bidders circling the company."
The sale of Repiblic, to an investor group led by Wand Partners for $127m (£78m) is expected to take full control in the second half of this year, subject to regulatory approval.
Winterthur said the deal would have a positive impact on its solvency and performance ratios.
