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

British Gas owner Centrica to scrap standard variable tarrifs for new customers

Coppers nightclub see their profits soar

Index shows slower growth for Irish businesses

Aerospace giants demand Theresa May and EU agree urgent Brexit deal


Today's Stories

Ireland must forge even closer links with eurozone

Is this the end for zero-hour contracts?

The European Union seeks tax rule action

Despite the ticking clock, some optimism over sterling

Lifestyle

Making Cents: Black Friday is an opportunity - but be careful

Dishing out the chores

Quietly successful: Meet the man behind ECM Records

More From The Irish Examiner