Insurers are poor at buying other businesses
The possible sale of RAC shows how insurers have difficulty in enhancing shareholder value when acquiring non-core businesses, writes Tony Cornell
This column has tracked the ownership of RAC over the years and another twist in the story is likely to take place in the next few weeks.
RAC has never been the powerhouse in personal lines that its competitor in assistance services, the AA, has been – RAC always gave prominence to its core business and dabbled in motor insurance. It originally set up a small broker, and then tied to Guardian (later Axa) for a huge initial golden hello, returned to a panel approach and then sold its entire
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