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Lloyds TSB dismisses Scottish Widows sale rumour

Date: Tue, 07 Oct 03 Analysis

LONDON, UK - Lloyds TSB has dismissed rumours that it would consider selling Scottish Widows, its beleaguered life insurance subsidiary, according to the London Times.

Archie Kane, who replaced Mike Ross as head of Scottish Widows in September of this year, told the newspaper that the insurance unit would look to continue to exploit its brand and its reputation in the independent financial adviser market.

Mr Kane also added that the life insurance group aims to 'deliver a financial dividend from 2004.'

Scottish Widows has already started to reduce the equity portion of its funds so as to reduce the volatility of earnings from the insurer that was acquired for £6 bn.

Problems with Scottish Widows, which recently attracted a £1.9m fine from the Financial Services Authority, are suspected to have sparked the speculation that it could be sold.

However, yesterday's statement pointed instead to a future closer integration between the bank and Scottish Widows.

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