Former RSA chief leads PE bid for Direct Line

THE former chief executive of Liverpool-based insurance group RSA is leading a private equity consortium looking to bid for insurer Direct Line Group, which also employs hundreds of staff in the city.

Andy Haste, who is credited with saving RSA from near-collapse in 2003, is working with private equity firms Blackstone, Bain and Advent, according to reports in the Sunday papers.

Although the plans are at an early stage, a successful bid of between £2.5bn and £3.5bn could see Mr Haste installed as Direct Line Group’s chief executive or chairman, it was reported.

Direct Line is the insurance arm of Royal Bank of Scotland (RBS) and employs around 500 people in a call centre in Cavern Walks in Mathew Street. Its brands include Direct Line, Churchill, Privilege and Green Flag, plus the broker business NIG.

RBS,  which is 82% state-controlled, has been ordered to dispose of Direct Line by the end of next year under a state aid deal with Brussels following its £45bn rescue by British taxpayers.