RBS Insurance to be renamed Direct Line in advance of sale
RBS Insurance is to be rebranded as Direct Line Group, after the firm’s best-known consumer brand, as part of the preparations for the division’s sale.
The bank was ordered to dispose of its insurance business as part of the conditions attached by the European Union when it approved state aid given to RBS Group in 2008.
“This is an important, symbolic step for the group as we move towards having a distinct identity ahead of the planned divestment from RBS Group,” said Paul Ceddes, chief exec of Direct Line Group.
RBS aims to sell a minority stake through an initial public offering in the second half of 2012, followed by another sale in 2013, which will take its holding down to below 50 per cent, while remaining open to offers for the business from other insurers.
RBS Insurance, which also operates under the Churchill, Privilege, and Green Flag brands, returned to profit in the first half of 2011 after soaring bodily injury claims pushed it £295m into the red in 2010.
The company has focussed on derisking its order book and growing the business to ensure the highest possible price from potential buyers.
Last month the division was fined £2.17m by the FSA for altering customer documents.