RBS sells 20% stake in U.K. insurer for £630M

|By:, SA News Editor

RBS (RBS) has raised £630M ($1B) by placing a 20% holding in Direct Line on the market, leaving the bank with a 28.5% stake in the U.K. insurer.

RBS has been selling down its ownership of Direct Line as part of the conditions of its state bailout in 2008. The bank said it's on course to totally exit the insurer by the end of 2014, as planned.

RBS intends to use the proceeds from the sale for general corporate purposes. Its shares are -1.1% in London. (PR)