Direct Line flotation on track

Citing "sources close to the company" Reuters has reported that order books on the flotation of Royal Bank of Scotland's insurance business Direct Line have been covered three days into the company's nine day investor roadshow.

As part of an agreement with the EU, the bank has to sell Direct Line by the end of 2014. An initial tranche is being offered this month at between 160p and 195p, valuing the business at around £2.6bn, lower than the £3bn analysts had been expecting.

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Direct Line offers home, travel, pet and car insurance. It also owns the Churchill and Privilege brands and the breakdown business Green Flag.

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