Direct Line confirms Biggs as chairman

Direct Line Group has confirmed that it has appointed former Aviva finance director Mike Biggs as its chairman.

The confirmation follows press reports on Wednesday suggesting Biggs would take the role. Former RSA chief executive Andy Haste and former Aviva UK chief executive Patrick Snowball had previously been tipped as contenders for the job.

As the news reports hinted, Biggs will retain his current role as chairman of life consolidator Resolution while chairing Direct Line Group.

Andrew Palmer, who has been serving as interim chairman of Direct Line Group, will remain on the board, alongside Jane Hanson, as an independent non-executive director. 

Direct Line Group, formerly RBS Insurance, will split from Royal bank of Scotland (RBS) in the second half of this year, either through a flotation or trade sale. A flotation is considered the most likely course of events. If a flotation takes place, a minority stake of the company will be listed on the stock exchange this year, followed by a secondary listing next year.

“We are delighted to appoint Mike as chairman of Direct Line Group,” RBS group chief executive Stephen Hester said in a statement. “He brings with him extensive insurance industry experience and a successful track record in flotations in this sector. The successful divestment of Direct Line Group is one of our priorities and we have confidence that Mike will help us get this done. The business has been doing well and is increasingly ready to flourish as an independent company.”

Direct Line Group chief executive Paul Geddes added: “I warmly welcome Mike’s appointment and look forward to the prospect of working with him in the exciting period that lies ahead for this business.” 

“Following the completion of the first phase of Direct Line Group’s transformation and the major profits turnaround, we will benefit greatly from Mike’s experience as we lead the business into the next phase of its transformation and a separate future,” Geddes added.

RBS has to sell off the majority of Direct Line Group by the end of 2013 and its entire stake by the end of 2014.