RBS SELLS SPANISH INSURANCE STAKE

Royal Bank of Scotland (RBS) has sold its stake in Spanish insurance company Linea Directa Aseguradora for €426m, 2.5 times above tangible book value. Spanish bank Bankinter, RBS’s joint venture partner in the Spanish insurer since its launch in 1995, will buy the remaining 50% stake. RBS said the sale will result in a net gain of over £200m. The sale is in line with RBS’s strategy to sell non-core assets to strengthen its capital position. RBS said its international insurance operations will continue in Germany and Italy in addition to its portfolio of insurance brands in the UK. Linea Directa closed 2008 with total assts of €1bn.