RBS buys insurance group

RBS, which already owns Direct Line, said the deal would make it the UK's third largest general insurer.

Churchill employs 8,500 people in the UK and is being sold by Swiss bank Credit Suisse Group. Job losses are expected although RBS has been quoted as saying these would be in the "hundreds rather than thousands".

RBS is expected to keep both the Direct Line and Churchill brands, whilst combining IT, claims and central functions.