Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached:

Direct Line Insurance Group plc

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

Placing - Partial Sale

3. Full name of person(s) subject to thenotification obligation:

The Royal Bank of Scotland Group plc

X

4. Full name of shareholder(s)  (if different from 3.):

The Royal Bank of Scotland Group plc

5. Date of the transaction and date onwhich the threshold is crossed orreached:

18/03/2013

6. Date on which issuer notified:

18/03/2013

7. Threshold(s) that is/are crossed orreached:

50%

8. Notified details:

A: Voting rights attached to shares

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights

Direct

Direct

Indirect

Direct

Indirect

Ord GBP 0.10

979,054,063

979,054,063

749,766,378

749,766,378

49.98%

GB00B89W0M42

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate

Exercise/Conversion Period

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date

Exercise/Conversion period

Number of voting rights instrument refers to

% of voting rights

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

749,766,378

49.98%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable:

The Royal Bank of Scotland Group plc (49.98%)

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will ceaseto hold:

12. Date on which proxy holder will cease to holdvoting rights:

13. Additional information:

This Notification is based upon the Voting Rights figure of 1,500,000,000 obtained from yourselves.

14. Contact name:

Richard Hopkins

15. Contact telephone number:

0207 672 0354