Credit Suisse is reportedly planning to put its U.K. subsidiary, P/C insurer Churchill Insurance, up for sale. The company is Britain’s fifth largest non-life insurer, and posted a pre-tax profit of £83 million ($131 million) last year on premium income of £2.1 billion ($3.33 billion).
According to London’s Sunday Times, as reported by Reuters and several other news agencies, Credit Suisse has decided to sell the subsidiary in order to raise additional capital, following significant losses last year, and the need to provide funds for its Winterthur insurance division, and Credit Suisse First Boston, its U.S. investment banking operation.
It’s hoping to raise as much as £1.5 billion ($2.37 billion) from the sale. Possible buyers mentioned in the article include the Royal Bank of Scotland, which operates Direct Line, the U.K.’s leading auto insurer, and Lloyd’s TSB, the country’s largest commercial bank.