Go Compare will be spun off from its parent company, Esure, in a £500m demerger to be announced this week, according to reports.
Sky News reported this evening the board of insurance group Esure will approve the deal to offload Go Compare and make a formal announcement to the stock market within the next few days.
The move follows an announcement earlier this year from Esure that it would look at selling Go Compare. Esure only acquired full control of Go Compare 18 months ago, after it bought the 50 per cent of the company it did not own for £95m.
In June, Esure chairman and founder Sir Peter Wood said: "Now is the right time to review strategic opportunities for the Go Compare business, including a potential demerger, in order to maximise value for our shareholders."
Sky reported the deal could be worth around £500m.
Underlying profits before tax at the Esure group dipped 1.9 per cent in the first half of the year to £45.6m as it cut its interim dividend from 4.2p to three pence in order to "retain capital to fund growth."
Go Compare made £14.5m in pre-tax profits over the same period, up one-fifth on 2015.
Esure declined to comment on the reports.