The Co-operative Group to retain General Insurance business
20 January 2014
The Co-operative Group (“the Group”) announced on 21 March 2013 its intention to sell its General Insurance business. The proceeds of the sale were envisaged to be a part of the Group’s planned £1 billion contribution to the recapitalisation of The Co-operative Bank. The revised terms of the Recapitalisation Plan, as set out on 4 November 2013, involve a smaller Group contribution and have allowed the Group, as part of its wider strategic review, to reconsider its plans.
The Group today is pleased to announce its intention to cancel the sale process and keep the General Insurance business. In reaching this decision, the Group has taken into account the General Insurance business’s significant growth potential.
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, said:
“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. "
For further information contact:
The Co-operative Group
Tel: 07880 784442
Tel: 020 7353 4200