Royal Bank of Scotland (RBS) has confirmed it will be selling off its Direct Line Insurance business and turning it into a separate public company.
The financial institution's share price has soared on the London Stock Exchange as a result of this news.
Early estimates indicate Direct Line – which is the biggest cover provider in the country – could have an initial public offering of £3 billion.
Some 25 per cent of the Direct Line Group will be offered in the first share sale, with more expected to follow.
RBS is majority-owned by the taxpayer and was ordered to sell the insurance business by European Union authorities as a condition of the major British bank receiving £45 billion in state aid following the 2008 financial crisis.
At 10:50 BST today (September 14th), RBS shares climbed 3.5 per cent to an index value of 283.70p.
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