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RBS makes £630m from Direct Line sale

RBS makes £630m from Direct Line sale

Category: Banking

Updated: 20/09/2013
First Published: 20/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Royal Bank of Scotland (RBS) has sold 20% of the shares it holds in the insurance firm Direct Line for £630 million.

This cuts the bank's stake in the insurer, which owns the Churchill and Privilege insurance brands, from 48.5% to 28.5%.

The sale forms part of a condition of RBS's £45 billion Government bailout at the height of the financial crisis in 2008.

At the time, the bank was ordered to complete the sale of Direct Line by the end of 2014.

The sell-off began in October last year, when the bank sold 34.7% of its holding in the insurer. In March this year it sold a further 28.5%.

RBS Group finance director, Bruce Van Saun, said the latest sell-off means the bank is right on target to divest its stake in Direct Line by the end of next year.

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