RBS say 'oh yes' to Churchill sale

Taxpayer-backed Royal Bank of Scotland today said “oh yes” to plans to spin off its Churchill and Direct Line insurance arm in a highly-anticipated stock market flotation.

The 80% state-owned lender must sell its interest in Direct Line Group, which also includes the Green Flag and Privilege brands, under a European-imposed condition of its £45bn (€56.2bn) bailout received in 2009.

Around 25% or more of Direct Line Group, whose Churchill brand is represented by the popular nodding dog, will be offered in the initial share sale with additional tranches to follow.

RBS must sell a majority stake in Direct Line Group by the end of next year, and divest of the entire company by the end of 2014.

Direct Line Group, which has 4.2m personal motor policies and 4.3m home insurer policies in force, should be worth around £3bn (€3.74bn), according to analysts.

More in this Section

The world's first self-driving taxis debut in Singapore

The Windows 10 Anniversary Update may have some unwanted consequences

Irish companies are missing out on billions of euros as Government tenders go overseas

The Honor 8 wants to be the phone of the selfie generation


Today's Stories

Lottery operator hits €7.4m profit as sales decline

UK ‘could stay in the EU’

Paddy Power open to more deals as industry shrinks

Pfizer in $725m drugs deal

Lifestyle

Food for thought on cutting costs of back-to-school

Teenage Fanclub: Not quite teenagers any more

Social media giant faces up to gaming

More From The Irish Examiner