The Outlook For Direct Line

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By

Nate Weisshaar

Published in Company Comment on 8 October 2012

Nate and Stuart take a look at RBS's (LSE: RBS) upcoming flotation of Direct Line.

During the summer, various private-equity groups reportedly weighed up acquiring RBS's (LSE: RBS) insurance subsidiary Direct Line, with a mooted price tag of between £3 billion and £4 billion. Such a market cap on flotation would catapult Direct Line straight into the FTSE 100 (UKX). In this video, Motley Fool Share Advisor senior analyst Nate Weisshaar and premium editor Stuart Watson look at the impending flotation in detail.

Direct Line's impending flotation could be one to watch, as industry rival Admiral (LSE: ADM) rallied from a start price of 275p to as high as £17 after its 2004 listing.

Indeed, attempting to bag such handsome gains is the subject of "10 Steps To Making A Million In The Market", a free Motley Fool report that explains how even dull sectors -- including insurance -- can provide exceptional opportunities to boost your portfolio towards the magic million milestone. Just click here to download the free 'Millionaire' report today.

 

Click below to watch Nate and Stuart's video

Video

 

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors Of 2012" -- our guide to three favourable industries. This free report will be dispatched immediately to your inbox.

Further investment opportunities:

> Neither Nate nor Stuart own shares in RBS.

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