Lloyds sells 70% stake in esure
by Gill Montia
Story link: Lloyds sells 70% stake in esure
Lloyds Banking Group has announced the sale of its 70% holding in online insurer, esure, for a little over £185 million.
The stake is being acquired by a management buyout vehicle to be called esure Group Holdings Ltd, led by esure chairman, Peter Wood.
Mr Wood is best known for pioneering the direct selling of insurance over the telephone back in the 1980s, when he launched Direct Line.
esure, which includes the Sheilas’ Wheels brand, was founded in 2000 as a joint venture by Mr Wood and the then Halifax plc.
The firm now offers home, motor, travel and pet insurance, using the Internet as a primary sales channel.
On completion of the transaction, esure staff will continue to be employed by esure Services Ltd.
Lloyds’ group executive director insurance, Archie Kane, comments: “This sale means we can focus our efforts on our core general insurance brands of Halifax and Lloyds TSB.”