Co-op Group scraps general insurance sale plan
LONDON Jan 20 (Reuters) - Britain's Co-operative Group cancelled plans to sell its general insurance business, which had been part of a plan to raise 1 billion pounds ($1.6 billion) to bolster capital at its troubled bank arm.
Co-op Group, whose bank has been hit by a capital shortfall and drugs scandal involving its ex-chairman, said on Monday it had decided to keep the general insurance business because it has to contribute less capital to the bank under a revised restructuring plan set out in November.
It said it will meet its capital commitment to the bank through the disposal of the life and savings business and "the strategic management" of some of its property assets.
"We received a significant amount of interest in the general insurance business, which reflects its potential," Euan Sutherland, chief executive of Co-op Group, said in a statement.
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