Newport-based insurance company Gocompare.com is to be demerged from esure Group plc and will be listed separately on the main market of the London Stock Exchange.

The proposed demerger is conditional on the approval of esure shareholders, and subject to shareholder and relevant regulatory approvals.

The esure Board intends to recommend that esure shareholders vote in favour of the demerger, which, subject to the receipt of all required approvals, is expected to occur in later this year.

Gocompare.com was set up in Newport in 2006 by Cwmbran entrepreneur Hayley Parsons, who landed a £43.7m pay-out after selling the business to car insurance firm esure in late 2014.

Hayley Parsons stepped down as chief executive of the price comparison site as a result of esure's £95m deal to buy the half of GoCompare it did not already own.

The sale valued the entrepreneur's remaining 23 per cent stake in the business at almost £43.7m.

Sir Peter Wood, chairman of esure Group plc, said: "Following a strategic review and the appointment of Matthew Crummack as CEO of Gocompare.com, we believe that a demerger of Gocompare.com from esure will allow both entities to thrive and reach their full potential.

“esure and Gocompare.com are distinct businesses, which are both underpinned by strong brands.

"A demerger will allow the separate management teams to focus on their independent strategies, and also enhance their ability to align senior management incentives.

“I am delighted with the breadth, depth and experience of the members of the Gocompare.com board and look forward to working with them in my role as chairman of Gocompare.com. I will also continue as chairman of esure."

Matthew Crummack, CEO of Gocompare.com, said: "The team at Gocompare.com, which we have strengthened at executive team level since my arrival as CEO in June, is excited by the opportunities that the demerger will provide. We are all focused on the implementation and evolution of the Gocompare.com strategy, which we believe will continue to enhance Gocompare.com’s business performance.”

It is thought that the demerger could benefit both businesses by:

• creating two separately listed and focused groups, a leading UK provider of motor and home insurance and a leading UK price and product comparison website

• Improving Gocompare.com’s ability to attract and retain technology-focused senior managers, who would join a stand-alone entrepreneurial digital technology business

• Allowing the separate esure and Gocompare.com management teams to focus on pursuing their strategies independently

• Enhancing the ability of esure and Gocompare.com to align senior management incentives with the performance of the standalone business rather than the combined group

• Optimising esure and Gocompare.com for the relevant regulatory environments within which they operate and enabling each group to operate with an appropriate capital structure.