Allstate, Berkshire Circle RBS Insurance
NEW YORK (
) -- Rumors are that
Allstate
(ALL) - Get Free Report
and Warren Buffet's
Berkshire Hathaway
(BRK.A) - Get Free Report
may be interested in acquiring
Royal Bank of Scotland's
(RBS) - Get Free Report
insurance units Churchill and Direct Line.
Reports in
Marketwatch
and
The Sunday Times
say that RBS was
hiring advisors to run the sale.
This isn't the first time that Allstate has been rumored to be checking out RBS' insurance assets. The insurer was rumored to purchase the assets during the financial crisis and, "it became a big issue," says Paul Newsome, an analyst at Sandler O''Neill & Partners.
"It makes sense that if they looked at them before, they would be looking at them again," he says. "It would allow Allstate to go from a domestic company to an international one and would also add to the direct distribution system."
Of course, it is unclear if Allstate is interested in making acquisitions. The company historically has focused on stock repurchases, and it is likely they could make
. Allstate told
The Street
the company did not comment on acquisition rumors. P/>Strategically, it would make more sense for Berkshire, to expand its personal lines operations, Geico, with the acquisition. Berkshire also has an international presence, explained Newsome.
--Written by Maria Woehr in New York.
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