RBS To Net $295 Million Gain From Spanish Sale

LONDON (AP) — Royal Bank of Scotland Group PLC said Thursday that it has sold its half share in a Spanish insurance company to its joint venture partner, Bankinter SA. — a move that is expected to net the ailing bank around $300 million.

RBS said the sale of its stake in Linea Directa Aseguradora (Direct Line Insurance) for euro426 million ($563 million) was expected to yield a net gain of 200 million pounds ($295 million).

When it announced a British record corporate loss of 24.1 billion pounds on Feb. 26, RBS said it aimed to wind down or dispose of 20 percent of its assets within five years.

The British government spent around 20 billion pounds to rescue the bank, and now holds 70.3 percent of its shares.

RBS said Linea operated as a largely independent Spanish insurance company with limited connection to the group.

Formed in 1995, it is the sixth-largest motor insurance provider in Spain, and has expanded into insuring motorcycles, fleets and households. At the end of last year it had assets of euro1,016 million, RBS said.

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On the Net: http://www.rbs.com