Royal Bank of Scotland Insurance (RBSI) has adopted the moniker of its best-known brand, Direct Line, as its separation from its banking parent company continues.

Ditching the tarnished banking brand to instead be known as Direct Line Insurance Group has been regarded by industry watchers as the strongest signal yet that it will pursue a stock market floatation rather than a trade sale.

As a condition of its bailout by the UK Government in 2008, the Royal Bank of Scotland was ordered to divest the insurance arm by the end of 2014.

The company is expected to float a minority stake in the insurer by the end of this year, before following up with further share sales in 2013, but it has also said previously that it is open to offers from rival insurers.

Aside from its Direct Line motor brand, the company also owns the Churchill and Privilege motor brands, as well as affinity specialist UKI and commercial insurer NIG.

Company filings show that it has also converted from a private entity to a public limited company.