Nationwide to cut tie

NATIONWIDE Building Society seems set to follow most of its large competitors in setting up its own life insurance company, writes Paul Durman.

The society confirmed yesterday that it is considering ending its 'tie' to sell the policies of Guardian Royal Exchange. Although Nationwide has not yet formally decided to sever its links with GRE, it has opened discussions with potential partners.

The building society provides about 30 per cent of GRE's life insurance business, so its loss would be a considerable blow. GRE's shares closed 2p lower at 240p.

Nationwide's move has long been expected. GRE has attracted frequent criticism for the poor performance of its with-profit policies and a series of problems with its smaller tied agents.