RBS Insurance sets bid deadline

LONDON (Reuters) - Royal Bank of Scotland is expected to get interest from up to seven bidders at a first informal bid deadline for its insurance arm on Wednesday, with Zurich Financial Services seen as the front-runner.

RBS Insurance, Britain's biggest motor insurer and home to brands including Direct Line and Churchill, was put on the block last month as RBS seeks to rebuild its capital base, and is expected to fetch between 6 billion and 7.5 billion pounds.

European and U.S. bidders and one suitor from Asia are expected to submit their interest by Wednesday's late afternoon deadline, although a shortage of cash among financial firms, volatile markets and the size of the deal in the competitive and mature UK insurance market may cool serious interest in the auction.

Zurich is seen as the strongest contender as it has financial firepower while rivals are under pressure and a deal would make it a serious player in the UK motor market.

Other bidders are likely to be Generali and Allianz from Europe; Allstate, Travelers and AIG from the United States; and China's Ping An, according to people familiar with the situation. (Reporting by Steve Slater and Clara Ferreira-Marques, editing by Elizabeth Fullerton)