Lloyds Banking Group is expected to confirm its intention to retain Scottish Widows tomorrow as it looks to profit from the “mass market” advice gap post-RDR.
The bank’s insurance arm was thought to be under threat as part of chief executive Antonio Horta-Osorio’s strategic review of the business, with analysts pointing to a potential £7bn flotation.
However, Osorio is now expected to place the provider “front and centre”, with a focus on its intermediary and bancassurance offerings.
Lloyds plans to use Widows’ investment, protection and savings products, which will then be sold through the bank’s high street branches.
The bank is also expected to confirm plans to “rationalise” its international businesses.
A source says: “Antonio sees that there’s a big opportunity for growth both in the intermediaries sector, as well as in bancassurance.
“RDR is going to create a mass market gap, and Lloyds will be able to use Scottish Widows as the place that can manufacture protection, investment and savings products, which can all be sold through Lloyds many, many branches.
“Widows’ really is going to be front and centre tomorrow.”