Britain’s Royal & Sun Alliance is in advanced talks with PricewaterhouseCoopers, the liquidators for Independent Insurance, to acquire more parts of Michael Bright’s failed company.
RSA has already agreed to takeover around 250,000 of Independent’s existing policyholders, and has hired over 1200 ex-employees as part of the deal. It’s now seeking to acquire Property Casualty Services, Independent’s loss-adjustment unit. If successful, it would add another 300 jobs.
Meanwhile, according to a report in London’s Financial Times, British insurers were bracing themselves for an expected levy based on their premiums, which would be used to pay policyholders left stranded by Independent’s collapse.
Under U.K. law the Policy Protection Board can assess a surcharge of up to 1 percent on gross premiums. As it’s now estimated that Independent’s outstanding claims may eventually reach £1 billion ($1.41 billion), the PPB would need the entire £260 million ($367 million) such a levy would raise.
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