Direct Line Group planning more jobs cuts after announcing float

INSURANCE firm Direct Line Group is expected to announce further job losses after confirming the terms of its long-awaited initial public offering on Friday.

Chief executive Paul Geddes confirmed to reporters that more staff are set to lose their jobs in a bid to cut costs at the firm, on top of the 891 job losses announced earlier this month.

RBS, which is being forced to dispose of the company due to conditions attached to its state bailout, said it intends to sell a initial 25 per cent stake in the firm on the London Stock Exchange.

Barrie Cornes, an analyst at Panmure Gordon, told City A.M. that some private equity firms were still considering making a bid for the firm: "If anything's going to happen it'll be before it lands on the market. They could wait and see how [the IPO] is priced and then act."