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Co-op finance seeks suitors

first_img Co-op finance seeks suitors KCS-content whatsapp whatsapp Show Comments ▼ Sunday 24 October 2010 11:01 pm Read This NextThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Share THE Co-operative Group is considering a potential sale of its £18bn life and pensions business, it emerged this weekend.A source close to the company said the group was exploring the possibility of a sale and that an information pack was “doing the rounds.” Two potential bidders include Resolution and Phoenix, firms that specialise in buying insurance and pension closed books. However, there are thought to be no frontrunners or stand out bids for the business so far, despite a number of expressions of interest from potential bidders.Deutsche Bank has been hired to advise on any possible sale of the business, although the Co-op is under no pressure to sell and may still decide to continue as it is. Any valuation of the company would come in at a fraction of the £18bn of assets – probably in the region of around three per cent putting a value on the life and pensions business at around £540m. The strategic review was instigated earlier this year following the Co-operative’s acquisition of Britannia building society in January 2009.Neville Richardson, the former head of Britannia building society became chief executive of Co-operative Financial Services and has been leading the integration of the two businesses ever since, including the strategic review.Co-operative Financial Services is in good shape. Profits jumped 50 per cent in the first half of 2010 to £75m. But the insurance arm has been hit hard by the economic downturn. Co-op’s insurance services division made a pre-tax profit of £25m in 2009 – the last available set of results – down 50 per cent on a year earlier. Tags: NULLlast_img

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