Co-op's general insurance arm won't be axed in sell-off - reports

The Co-operative Group looks likely to keep hold of its general insurance operations amidst reports that it is considering selling off its £18bn life insurance business.

Reports claim that Co-operative Financial Services, the £76bn financial division of the Co-op, has asked Deutsche Bank to generate interest in Co-operative Insurance Society (CIS).

Information documents have been sent to potential buyers, which include Legal & General, Resolution, Phoenix, Royal London and Aviva.

Although according to today's Telegraph, Resolution and Phoenix are understood to have indicated they are not interested in the business in its current form. It is thought CIS could be broken up and sold in parts.

The move to sell the life insurance arm of CFS is said to be part of a strategic review by chief executive Neville Richardson and follows the merger of the Co-op's financial division with Britannia building society in January 2009.

It is thought that Co-operative Asset Management and the Co-op's general insurance business will not be put up for sale.