RBS preparing for insurance arm flotation

The bank has been under pressure from the EU to sell off its insurance business in return for up to £54bn of state aid and to maintain the taxpayer stake in the bank of over 80% A flotation of the Churchill, Direct Line and Green Flag operations could take place in 2012 through a public offering, the Guardian reports. It originally attempted to sell-off the insurance operations in order to raise funds before being bailed out by the state in October 2008.