Direct Line Insurance Group PLC has announced the sale of its brokered commercial insurance business lines to RSA Insurance Limited, a subsidiary of Intact Financial Corporation. The initial consideration for the sale is £520 million, with potential further consideration of up to £30 million contingent upon certain earn-out provisions. In addition, Direct Line estimates that it will release capital of up to approximately £270 million over time. The company will retain the back book of business written and earned by the brokered commercial insurance business prior to October 1, 2023. The sale will facilitate the transfer of all of Direct Line's brokered commercial insurance business lines and associated partnerships to RSA through a reinsurance transaction and a renewal rights transfer. The back book policies will remain with Direct Line, but discussions regarding their potential transfer to RSA will take place if the transaction is approved by shareholders. Direct Line will continue to be active in the direct small business commercial lines insurance space through its brands "Direct Line" and "Churchill". The sale is expected to provide a significant uplift to Direct Line's solvency capital ratio, with an expected uplift of approximately 45 percentage points on day one. The company believes that the sale will allow it to focus on retail, personal, and direct small business commercial lines and improve its capital resilience.