Co-operative Group to keep general insurance business
The Co-operative Group has decided to retain its general insurance business after previously saying it would be put up for sale.
Back in March 2013, the Co-operative Group announced its intention to sell the insurance business and use the proceeds of the sale to help plug a £1.5 billion capital hole within its banking arm.
However, the group has now said that the revised terms of its bank’s recapitalisation plan as set out in November 2013, means that it no longer needs to sell the business.
In a statement the Co-operative Group said: "The group will now meet its additional capital commitment to the Bank Recapitalisation Plan through the previously announced and completed disposal of the life and savings business, as planned, and other measures, most notably the strategic management of a limited number of property assets across the group’s businesses."
Euan Sutherland, group chief executive of The Co-operative Group, added: "Having considered the sale process, and in light of the changed requirements on us under the Bank recapitalisation process, we believe it is in the best interests of our members, customers and colleagues, that we retain this strong business and develop it further. We received a significant amount of interest in the General Insurance business, which reflects its potential."
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