Motor insurer Direct Line Insurance Group has said it will pay a special dividend of 27.5 pence per share following the completion of disposal of its international division.
The payment will equate to around £412.5 million is to be be paid as interim dividend for the financial year ending December 31, 2015.
Direct Line had said in September it would return most of the net proceeds from the sale of its Italian and German businesses to Spanish insurance company Mapfre for €550 million.
Direct Line, whcih has brands such as Churchill, Privilege and the Green Flag roadside recovery service, also said it would propose a share capital consolidation alongside the special dividend.
Shore Capital's Eamonn Flanagan said the dividend payout was in line with expectations.
Deutsche Bank analyst Oliver Steel said in September Direct Line shareholders should expect up to 26 pence once the deal was finalised.
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