Consortium rumoured to be eyeing RBS assets

A private equity consortium is being formed to examine a bid for the Royal Bank of Scotland\'s insurance assets, reports claim today.

Several newspaper reports this morning claim the consortium is being set up with a view to launching a bid for Direct Line and Churchill.

Earlier this week RBS estimated that write-downs due to its credit market exposures could peak at £4.3bn after tax this year.

The bank’s AGM statement says: “The board made an assessment of the likely amount of write-downs in 2008 that could result from the further deterioration in credit markets.

“The board based its predictions on sharp deterioration in credit markets during March, but also on our judgment of the steadily worsening economic outlook, and the increasingly clear expectation of investors and of many others that banks should strengthen their capital base.”