GoCompare could be sold by Esure for £450 million

GoCompare could be demerged from its owner eSure or sold for more than £450 million after the insurer appointed Deutsche Bank to launch a strategic review of the fast-growing comparison site.

The company said the board was examining one proposal to spin off GoCompare, whose adverts feature a quirky Italian opera singer, to boost returns for shareholders.

It has appointed Matthew Crummack, former lastminute.com boss, as chief executive of the group ahead of the carve-out.

Chairman Peter Wood, a big shareholder with a near-30% stake, said: “Now is the right time to review strategic opportunities for the GoCompare.com business.”

An auction is likely to attract the attention of private equity firms, as well as trade bidders.

Esure bought the 50% of GoCompare it did not already own after paying £95 million for the stake last year.

Since then, the site has gone from strength to strength after it reintroduced the opera character, Gio Compario, who was killed off in TV adverts following viewer complaints he was too annoying.

GoCompare made profits of £23.3 million of the overall group’s £134 million profit last year and eSure has indicated it expects profits to grow 20% to 30$ this year.

City estimates suggest the standalone value of GoCompare is about £460 million, equivalent to 40% of eSure’s total value.