Esure's demerger of Gocompare.com has been driven by Solvency II, an EU-wide insurance regulatory regime introduced in January 2016, according to Shore Capital analyst, Eammon Flanagan. The new rules will require insurers and reinsurers, which are required to hold a certain proportion of their assets as reserves, to raise capital from the public through share sales or other means. Flanagan said that the demerger will have implications for other personal line insurers such as Admiral and Hastings.
Esure's demerger of Gocompare.com has been driven by Solvency II, an EU-wide insurance regulatory regime introduced in January 2016, according to Shore Capital analyst, Eammon Flanagan. Esure announced Gocompare.com will be listed as a separate company on the London Stock Exchange and existing Esure shareholders will be given pro-rata shares in Gocompare.com as a dividend in specie. Flanagan said that the demerger will have implications for other personal line insurers such as Admiral and Hastings.