Direct Line Group expects a net gain of £160m after disposing of its Italian and German operations

Direct Line Group (DLG) has reached a £430.5m deal to sell its international division to Mapfre.

DLG expects to realise a net gain of £160m on the sale, with net proceeds expected to be returned to shareholders.

The deal includes a transitional agreement allowing Mapfre to use the Direct Line brand in Italy and Germany for three years.

DLG chief executive Paul Geddes said: “We believe that the sale of our international businesses to Mapfre is a good result for all of our stakeholders, providing excellent value for our shareholders, while offering our customers and colleagues stability and opportunity.

 “Meanwhile, our UK personal and commercial lines businesses are continuing to implement the many initiatives we have under way to deliver our strategic priorities.”