Lloyds sells stake in insurer esure
Lloyds Banking Group has sold its 70% stake in Sheilas' Wheels insurer esure to a management team led by founder Peter Wood for just over £185 million.
Mr Wood formed a joint venture with the then Halifax 10 years ago to set up the firm, which offers home, motor, travel and pet insurance via the internet.
Reigate, Surrey-based esure has 1,500 staff, with about 400 employees in Manchester and 800 in Glasgow. As of the end of 2008 it held £976 million in assets.
The sale of the stake by Lloyds, which is 43% owned by the taxpayer, is its fifth disposal since it began offloading non-core businesses six months ago. The sales have brought in around £500 million for the bank so far.
Mr Wood, who also launched Direct Line back in 1985 and is worth £120 million according to the Sunday Times Rich List, gained backing for the buyout from private equity firm Penta Capital.
He said: "When I set up esure with Halifax plc ... no one could have foreseen the events that would lead to Lloyds Banking Group - who already offer car and home insurance successfully - taking on that role.
"This move creates a clean base for both companies to move forward pursuing their own insurance strengths unfettered.
Lloyds' executive director for insurance, Archie Kane, added: "This sale means we can focus our efforts on our core general insurance brands of Halifax and Lloyds TSB."