Esure and GoCompare to demerge

Esure and GoCompare have announced they are demerging following a summer review of the business.

Esure only took full control of GoCompare last year when it acquired the 50% share it did not already own for £95m.

However, chairman of both companies Sir Peter Wood said, ‘Esure and are distinct businesses which are both underpinned by strong brands. A demerger will allow the separate management teams to focus on their independent strategies, and also enhance their ability to align senior management incentives. We believe that a demerger will allow both entities to thrive and reach their full potential.’

The demerger, expected to cost £19m, should be complete by the end of the year.

Following the split, GoCompare is expected to be listed on the London Stock Market with a market value in excess of £400m.

The split will see Esure focus on its core business of car insurance.