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Bank of America poised to sell UK insurance premium finance arm – report

Bank of America, the leading retail bank in the US and second largest bank globally, is believed to be ready to offload its UK specialist finance business Premium Credit, The Business has reported in its online edition.

According to The Business, London-based Premium Credit is the leading provider of insurance premium finance in the UK, counting six out of every 10 customers of the product as its clients.

However, US market leader Bank of America has apparently started the ball rolling on preparing the divestment of the business by inviting offers for Premium Credit.

The business was acquired by leading credit card issuer MBNA in 2004 and was absorbed into the Bank of America group when it bought MBNA at the beginning of this year.

The US lender has not suggested a sale price for its UK subsidiary. However, when MBNA purchased the business two years ago it paid approximately $338 million.