RBS set to float insurance arm

Taxpayer-backed Royal Bank of Scotland is set to launch the flotation of its Direct Line Group insurance arm within weeks after ending sale talks with private equity buyers, it was reported today.

The bank has been in talks with firms including Blackstone, Bain Capital and KKR about a private sale of Direct Line, which also includes Churchill and Green Flag, but has told them it will forge ahead with a stock market listing, according to the Sunday Telegraph.