Show Hide image

Co-op Group considers sale of life assurance business

Deutsche Bank appointed to review business.

The Co-operative Group is considering a sale of its life assurance business, media reports say.

Legal & General, Resolution, Phoenix, Aviva and Royal London have all been mentioned as possible buyers of the business. Response from rival insurers is understood to be tepid in general.

Deutsche Bank has been appointed to conduct a review of the business, which controls assets worth ₤18bn.

Reports say that an interest that would prompt Co-operative to make a sale has not yet materialised and the company may even decide to keep the business with itself.

Both Resolution and Phoenix are said to be unready to finalise a deal as of now.

The Times reports that Co-operative plans to focus its financial services activities on its high street banking network.

Peter Marks, the group's chief executive, has warned that conditions for the financial services business would not improve until next year.