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 GoCompare.com 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.