LONDON (Reuters) - Shares in insurance provider esure (L:ESUR) plunged 27 percent on opening on Thursday following completion of its demerger with price comparison website Gocompare (L:GOCO)
The shares fell to 195 pence, and the drop was broadly in line with analysts' forecasts.
Analysts from RBC and Peel Hunt had expected esure, which provides insurance products to drivers, home owners, pet owners and holiday makers in Britain, to trade at around 190 pence after the split while Barclays (LON:BARC)' forecast was 198 pence.
In the demerger Esure shareholders received one new share in Gocompare, for each share they own in esure.
"Both businesses will benefit from being able to focus on their distinct strategies, with Gocompare.com operating as a leading UK price and product comparison website and esure Group as a leading UK provider of motor and home insurance," esure chairman Peter Wood said following the demerger which came as a result of a strategic review earlier this year.