Decision Nº M/03/015 from Competition and Consumer Protection Commission, 2003-07-08

• Jurisdiction: Ireland
• Parties: Churchill Insurance Group,Royal Bank of Scotland Group plc
• Date: 08 July 2003
• Decision Date: 08 July 2003
• Decision Number: M/03/015
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/03/015 of the Competition Authority, dated 8th July 2003,

under Section 21 of the Competition Act, 2002

Notification No. M/03/015 – Acquisition by The Royal Bank of Scotland Group

plc of Churchill Insurance Group plc

Introduction

1. On 13th June 2003 the Competition Authority, in accordance with Section 18 (1)

of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby The Royal Bank of Scotland Group plc (“RBS”) would

purchase the entire issued share capital of Churchill Insurance Group plc

(“Churchill”).

The Parties

2. Direct Line is a wholly-owned subsidiary of RBS, which also owns Ulster Bank.

Direct Line, which it is proposed will be brought together with Churchill to form

the insurance division of RBS, sells a small number of insurance products in

Northern Ireland which include motor, home, travel, pet and creditor insurance.

Its activities in the State are limited to home and travel insurance.

3. Churchill is a wholly-owned subsidiary of Winterthur (UK) Holdings Limited, a

UK subsidiary of Winterthur Swiss Insurance company, the life and general

insurance company which is headquartered in Switzerland and owned by Credit

Suisse, a financial services group. Churchill’s activities in the State are not

significant, consisting of special risks insurance business and the sale of travel

insurance products of third parties.

Analysis

4. Regardless of whether or not insurance services constitute a broad product market

or comprise a variety of more narrowly defined markets, the proposed transaction

will not have a substantial impact on competition. There are a number of

insurance providers on the Irish market and the parties’ combined market share on

a wide or narrow market definition is less than [0 –5]%.

Determination

5. The Competition Authority, in accordance with Section 21(2) of the Competition

Act, 2002, has determined that, in its opinion, the result of the proposed

acquisition will not be to substantially lessen competition in markets for goods

and services in the State and, accordingly, that the acquisition may be put into

effect.

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