August 2008/3

When Royal Bank of Scotland (RBS) put its insurance division up for sale in April, few could have predicted that four months on there would be only one genuine suitor with a circa £5bn offer on the table.

RSA Insurance Group plc's strong results last week have once again fuelled speculation that it could be the subject of a takeover bid.

Costs in sterling and revenues in dollars has been the awkward position for many London-based brokers so the deteriorating pound is providing a welcome fillip.

Willis's recently acquired London market broking subsidiary Glencairn, part of the $2.1bn Hilb Rogal & Hobbs takeover, is set to be the core of a new, predominantly wholesale broker Faber Dumas, The Insurance Insider understands.