Lloyds sells Esure to founder

Lloyds Banking has agreed to sell its 70% stake in online insurance group esure to its chairman and founder Peter Wood.Wood, who previously founded Direct Line with Royal Bank of Scotland, set esure up in 2001 in conjunction with bank group HBOS. It merged with Lloyds in 2008 but Wood reportedly struggled with its new owners.Wood will buy out Lloyds' for about £185m in cash with financial backing from Tosca Penta Investments."When I set up Esure with Halifax as joint venture partner in 2000, 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 of majority owner," he said."This move creates a clean base for both companies to move forward pursuing their own insurance strengths unfettered. The agreement marks the start of a long period of hard work for everyone at esure but we will relish this challenge," he added.Esure, which is best known for its ads featuring film director Michael Winner, also owns the Sheilas' Wheels brand.