Insurance Post

Insurance business is safe amid Co-op Bank's decision to put itself up for sale


Co-operative insurance will not be impacted amid the Co-operative Bank’s decision to put itself up for sale and invite offers on its shares.

It follows Co-operative Bank's near collapse in 2013 which revealed a £1.5bn black hole in its accounts and was bailed out by US hedge funds and has since failed to strengthen due to poor interest rates.

The near collapse forced the Co-operative Group to consider selling the insurance business but it decided not to as it no longer needed the money from the sales it could bring in, despite receiving second round bids from Legal & General and Ana Cap.

A statement from Co-operative Group said that there would be no changes made to its insurance business this time.

"As a minority investor in The Co-operative Bank, the Co-op Group is supportive of the plan to find the Bank a new home," the statement said.

"We will continue to work with the Bank and other investors through the process. We are focused on finding the best outcome for our members, two million of whom are Bank customers, as well as the members of our shared pension scheme which is well funded and supported by the Group. Our goal is to ensure the continued provision of the type of co-operative banking products our members want."

Dennis Holt, chairman of Co-operative Bank, was the UK CEO of Axa UK until 2006. He has subsequently been a non-executive director of LV.

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