Lloyds sells stake in esure for £185m

Mr Wood formed a joint venture with the then Halifax 10 years ago to set up the firm, which offers home, motor, travel and pet insurance via the internet.

The firm is widely known for its advertising campaigns featuring film director Michael Winner.

Reigate, Surrey-based esure has 1,500 staff, with about 400 employees in Manchester and 800 in Glasgow. As of the end of 2008 it held 976m in assets.

The sale of the stake by Lloyds, 43 per cent owned by the taxpayer, is its fifth disposal since it began offloading non-core businesses six months ago. The sales have brought in around 500m for the bank so far.

Mr Wood, who also launched Direct Line back in 1985 and is worth 120m according to the Sunday Times Rich List, gained backing for the buyout from private equity firm Penta Capital.

He said: "When I set up esure with Halifax plc ... no one could have foreseen the events that would lead to Lloyds Banking Group – who already offer car and home insurance successfully – taking on that role.

"This move creates a clean base for both companies to move forward pursuing their own insurance strengths unfettered."

Lloyds' executive director for insurance, Archie Kane, added: "This sale means we can focus our efforts on our core general insurance brands of Halifax and Lloyds TSB."