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.

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Norwegian Air sale sees 6,000 US return flights cost under €190

Click&Go founders hope their success inspires others to take the plunge

State and AIB ask High Court to strike out application to prevent sale of State shareholding in bank

New visa processing centre in Qatar will lead to Irish economic benefits


Today's Stories

Cork to Limerick road may get funds for upgrade

Balanced growth for all needed more than ever

Diageo secures go-ahead for its whiskey distillery

Opec nears output cut deal

Lifestyle

What I’ve learned from watching detective shows

A self-confessed shopaholic tries to give up buying clothes for a month

Lorraine Kelly never felt better as she heads for 60

LauraLynn provide numerous services to families and support that is 'absolutely fantastic'

More From The Irish Examiner