RBS insurance unit plans 900 job cuts

[September 05, 2012]  LONDON (AP) -- The insurance division of Royal Bank of Scotland says it plans to cut nearly 900 jobs as it prepares for a stock market flotation.

The European Commission has set a deadline of 2014 for RBS to dispose of Direct Line Group as a condition for receiving a state bailout. Taxpayers hold an 82 percent stake in RBS.

Direct Line Group is the largest motor insurer in the United Kingdom.

Direct Line's chief executive, Paul Geddes, confirmed the planned job cuts on Wednesday. Direct line now employs about 15,000.

When RBS announced its first half results on Monday, it said it aims to achieve cost savings of 100 million pounds ($160 million) a year by the end of 2014.

[Associated Press]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.