Report: CVC In Talks To Buy RBS Insurance Assets

LONDON (Reuters) – Private equity firm CVC Capital Partners is in talks to take a controlling stake in Royal Bank of Scotland’s (RBS.L) British insurance assets, Bloomberg reported on Wednesday.

Bloomberg, citing two people familiar with the matter, said CVC was one of three bidders negotiating to buy a 51 percent stake in the Churchill and Direct Line insurance units.

Royal Bank of Scotland (RBS) declined to comment. CVC was not immediately available for comment.

RBS, which agreed a massive capital injection by the British government earlier this week, has long been looking to sell its UK insurance assets, but a deal has been delayed by the credit crunch.

The bank said earlier this month it was in “advanced talks” with a couple of potential suitors, and was confident of a deal. U.S. insurer Allstate (ALL.N) is widely tipped to be interested in the assets as well.

(Reporting by Mark Potter, editing by Richard Chang)