RBS approves plan to sell insurance arm

British taxpayer-backed Royal Bank of Scotland yesterday approved 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 the £45bn (€55bn) bailout it received in 2009.

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