Direct Line sale confirmed

Brands such as Direct Line, Churchill and Green Flag are to be sold after owner Royal Bank of Scotland confirmed it was to float its insurance division.

Direct Line RBS

The sale of Direct Line Group was forced on RBS by European regulators as a condition of accepting Government aid in 2008. RBS is majority owned by the state.

DLG has been preparing for the sell-off for more than a year, creating distinct positioning for its brands to increase their value to potential investors.

It recently repositioned Direct Line, switching from price-led to service-based marketing. Churchill ads present it as a straightforward antidote to complex insurance policies offered by others.

About 25% of shares will be offered initially, with more to follow. Analysts have valued DLG at £3bn.

RBS must sell the majority the majority of its stake by the end of 2013 and all of it by the end of 2014.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here