21 July 2017
download the report now

RBS confirms Direct Line IPO

14 September 2012  |  4120 views  |  0 RBS logo web screen shot

The Royal Bank of Scotland has confirmed plans to offload its Direct Line insurance business in an initial public offering that analysts suggest could be worth £3 billion.

RBS was told to sell off Direct Line by European regulators as part of the 82% taxpayer-owned bank's multi-billion pound state bailout deal following the 2008 financial crisis.

The group - which includes the Direct Line, Churchill Privilege and Green Flag brands - has 4.2 million personal motor and 4.3 million home in-force policies.

It will list on the premium segment of the London Stock Exchange in an all-secondary offering of Direct Line Group shares to be sold by RBS. Eamonn Flanagan, a Shore Capital Group analyst told Bloomberg that the IPO could value the business at between £3 billion and £3.2 billion.

Bruce Van Saun, group finance director, RBS, says: "Direct Line was launched more than 25 years ago as a pioneer of direct motor insurance and it has grown to become the market leader in UK personal lines insurance. We believe it has a strong future as a standalone insurance group continuing to serve its customers well while delivering attractive returns to investors."

RBS shares were up 10.4 pence, or 3.8%, at 284.3 pence per share, in mid-morning trading.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Credit Suisse shifts back office jobs from Singapore to India and Poland

Credit Suisse shifts back office jobs from Singapore to India and Poland

03 September 2012  |  7052 views  |  0 comments
RBS to axe 400 Direct Line jobs - BBC

RBS to axe 400 Direct Line jobs - BBC

26 August 2010  |  8480 views  |  0 comments
Direct Line and Intelligent Finance on the block in UK banking shake-up

Direct Line and Intelligent Finance on the block in UK banking shake-up

03 November 2009  |  11815 views  |  0 comments

Related company news

 
visit www.ncr.comvisit www.niceactimize.comvisit www.finastra.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
12841 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
8906 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8092 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
7808 views 0 | 5 tweets | 16 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
6525 views comments | 25 tweets | 15 linkedin