Direct Line deal

DIRECT Line has sold its closed insurance arm to takeover specialist Chesnara for around £39m.

Chesnara (up 11.5p to 283.25p) owns mostly closed funds in Britain and Switzerland.

Motor insurer Direct Line, spun out of RBS in a £787m pound float last year, said it expected to gain about £12m from the disposal of Direct Line Life Insurance.

The unit had about 150,000 policies in force at July 31.

Direct Line (up 2p to 209p) said it would issue a special interim dividend of 4p per share shortly after the sale.