Royal Bank of Scotland Group is likely to cancel the float of its insurance subsidiary next year after getting a GBP4 billion offer for the business from private equity group CVC Capital Partners, the Market Watch Website reported.

According to news reports, the offer for the arm that includes brands like Direct Line, Green Flag and Churchill was made in the last few weeks.

Meanwhile, other media reports also suggest that RBS has also received other expressions of interest in recent months and it was open to a trade sale despite plans to float the division next year.

Besides, Royal Bank of Scotland must sell its insurance unit to meet European conditions on state aid following the bailout that left the company 83% state-owned, the media reports stated.

The UK-based lender has tried selling the insurance unit in 2008 but originally decided to exclude private equity firms from the sale process, even though they could be attracted to motor insurance for its high-cash generating potential.

RBS has also eyed European players like Zurich Financial Services, Allianz SE and Italy’s Generali SpA to sell the insurance unit in 2008.

The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK government (HM Treasury) holds an 84% controlling share. The group is based in Edinburgh, Scotland and is the world’s largest company by assets.