Embattled insurer Direct Line is striving to restore credibility with the market. The £520 million sale of its brokered commercial business will repair a balance sheet, but the incoming boss, Adam Winslow, will need to prove that he has the stomach to push pricing up if inflation proves more stubborn than anticipated.
Offloading this business to the parent company of rival RSA will unlock about £270 million in capital, £170 million of which will be freed-up if shareholders approve the deal before the middle of December.
No more disposals are needed, says Jon Greenwood, the acting chief executive. That is fair enough — the sale would provide a crucial 45 percentage point boost in the Solvency II ratio to 192 per cent, above the top-end
