The sale of Direct Line has reached a critical point after CVC entered into exclusive negotiations with Royal Bank of Scotland, which has put its insurance assets on the block with a price tag of up to £6bn ($9bn).

CVC is understood to have been granted a period of exclusivity to acquire a 51 per cent stake in RBS’s insurance businesses, which include Direct Line and Churchill. CVC’s bid is fronted by Fred Watt, the buy-out group’s chief operating officer, and former finance director of RBS’s insurance operation.