Direct Line sells international division for £430.5m

25th Sep 2014 07:22

Insurance provider Direct Line has announced it has reached an agreement to sell its international division to Spain's Mapfre for €550m (£430.5m).Direct Line's international division focuses exclusively on the German and Italian markets, selling motor insurance in the two largest motor vehicle markets in Europe and the company said that it expects to recognise a pre-tax gain on disposal of approximately £160m."We believe that the sale of our international businesses to Mapfre is a good result for all of our stakeholders, providing excellent value for our shareholders, while offering our customers and colleagues stability and opportunity," said group chief executive Paul Geddes. "Meanwhile, our UK personal and commercial lines businesses are continuing to implement the many initiatives we have under way to deliver our strategic priorities."The insurance provider said it retained a strong capital position and it expects to return all the sale net proceeds to its shareholders.