Sale of Provident Insurance

Provident Financial PLC
09 May 2007

                            PROVIDENT FINANCIAL plc

                      SALE OF PROVIDENT INSURANCE TO GMAC





Provident Financial plc ('Provident') today announces that it has agreed the
sale of Provident Insurance, its non-core motor insurance business, to Car Care
Plan (Holdings) Limited (a subsidiary of GMAC Insurance Holdings Inc.) for a
consideration of approximately £170m, payable in cash. This follows the
announcement on 17 January 2007 that Provident was entering discussions for the
possible sale of Provident Insurance. The transaction is expected to complete in
June 2007, once the necessary regulatory approvals for change of control have
been obtained.



In the financial year ended 31 December 2006, Provident Insurance had revenues
of £160.9 million and made a pre-tax profit of £41.0 million.  At 31 December
2006, gross assets amounted to £436.7 million and net assets were £81.3 million.
  The disposal will give rise to a pre-tax exceptional gain of approximately £70
million.



As previously announced, the disposal of Provident Insurance is an important
element of the Group's capital re-structuring ahead of the demerger of its
International business.  Full details of the intended capital structures of the
UK and International businesses following the demerger will be included in the
Circular and Prospectus to be issued in connection with the forthcoming
demerger.



John van Kuffeler, Chairman, commented:



'Completion of this disposal will allow the demerger of the International
business to proceed rapidly.



'The price achieved for Provident Insurance reflects the quality of this
business and we are delighted to see it pass into the ownership of GMAC which is
a strong strategic buyer.'





9 May 2007





Enquires:

Kevin Byram          Brunswick      0207 404 5959

Nigel Prideaux       Brunswick      0207 404 5959


                      This information is provided by RNS
            The company news service from the London Stock Exchange END

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