Directors set to share more than £100m from Esure listing
Insurance tycoon Peter Wood and his fellow directors at Esure are poised to make more than £100m as the starting gun on a £1bn flotation is fired this week.
Mr Wood, who founded the company in 2000, is expected to publish an "intention to float" notice over the next few days and sell at least 25 per cent of Esure's shares on the London Stock Exchange. The directors control around 50 per cent of the Sheila's Wheels owner, so could share around £125m if the business reaches its expected valuation.
Esure hopes to take advantage of a recovery, which has seen the FTSE 100 reach a five-year high and companies such as housebuilder Crest Nicholson and estate agent group Countrywide queue up to list.
Esure has been one of the industry's strongest performers in recent years despite the rise in personal injury claims and a Competition Commission probe into the motor insurance market. The company was partly-owned by Lloyds Banking Group until 2010 when Mr Wood led a management buyout.
Esure's stock market listing follows last year's flotation of Direct Line, which was also founded by Mr Wood. Once listed, its shares rose by about 20 per cent and it has attract interest from foreign investors.
It is believed that Travelers, the US insurer, is interested in an Esure stake ahead of the float. Mr Wood and Jay Fishman, Travelers' head, are said to know each other well from the former's time in the US.
On Thursday, Direct Line will publish its first full-year results since floating. It is expected to see pre-tax profit fall to £233m from £343m in 2011. However, it is likely to reward investors with a maiden dividend of 7.8p.
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
British business: We need to stay in the European Union - or risk losing up to £92bn a year
World news in pictures
British father faces charges after confessing to slitting his two children's throats in Lyon flat
- 1 The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
- 2 Tottenham to smash pay scale with £150,000-a-week contract in attempt to tie Gareth Bale to club
- 3 'Revenge porn' is no longer a niche activity which victimises only celebrities - the law must intervene
- 4 The moral case on tax avoidance is overwhelming - and we all know Google wants to do the right thing
- 5 Sam Wallace: The second coming of Jose Mourinho at Chelsea will be a reunion that can only end in tears
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...
£425 - £550 per day: Orgtel: Senior Finance Project Manager - £550 - Bristol -...
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Gove...