Price comparison site Gocompare.com is to make its debut on the stock exchange after online insurer esure Group plc (LON:ESUR) unveiled plans to demerge it.
Esure said Gocompare, made famous by ads featuring fictional TV opera singer Gio Compario, would float on the main market of the London Stock Exchange in the fourth quarter.
The insurer says the split would help Gocompare to attract technology-focused senior managers and allow it to tailor its management incentive scheme and regulatory regime to the comparison site's specific market circumstances.
It expects costs from the demerger to be about £19mln.
Esure chairman Peter Wood said: "Following the strategic review and the appointment of Matthew Crummack as CEO of Gocompare.com, we believe a demerger of Gocompare.com from esure will allow both entities to thrive and reach their full potential.
Chief executive Stuart Vann said: "As outlined at our first-half 2016 results, we continue to make excellent progress across our strategic initiatives and the insurance business remains well positioned to capitalise on growth opportunities.
"In the first half of 2016 we increased gross written premiums by over 16% and we expect growth to continue in the second half of the year."
Before the split, Gocompare.com will draw down on a new £75mln debt facility and pay esure a cash dividend of about £63mln.
The cash dividend will cover the fees associated with the demerger incurred by esure and provide additional headroom above the group's solvency capital requirements.
Following the demerger, the esure board plans to continue with its dividend policy, which targets a base dividend of 50% of underlying profit after tax and in addition a further special dividend, if it has sufficient capital and distributable reserves, after allowing for an appropriate buffer and future growth.
The fees linked to the demerger will not affect the group's 2016 final dividend and will be adjusted for in its 2016 underlying post-tax profit.