Directors set to share more than £100m from Esure listing
Sunday 24 February 2013
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.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...