Direct Line to Join Top Flight in Latest Reshuffle

By Ian Walker

LONDON--Direct Line Insurance Group PLC (DLG.LN) is expected to be promoted to the FTSE 100 index for the first time since it floated in October 2012, replacing can maker Rexam PLC (REX.LN), based on indicative data from FTSE International Monday.

The insurance firm, which houses its namesake Direct Line, as well as its Churchill and Green Flag brands, was floated off by 80% government-owned Royal Bank of Scotland Group PLC (RBS.LN) as part of the conditions of its bail-out during the financial crisis.

In 2009, the European Commission ordered RBS to sell Direct Line as a result of the 45.2 billion pound ($74.96 billion)bailout that RBS received from the U.K. government. RBS no longer has an interest in Direct line, after selling its remaining interest in February this year.

The changes will be based on Tuesday's closing share prices and takes effect from the close of business on Sept. 22.

The FTSE 100 is a share index of the 100 most highly-capitalized companies listed on the London Stock Exchange. Any company that falls to 111th and below is automatically ejected from the top-flight index, while any firm that rises to 90 or above is automatically promoted.

While Rexam falls outside this range, it is the closest to the 110th threshhold and would therefore move to the FTSE 250 in order to balance the top index, FTSE International said.

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