Insurance entrepreneur Peter Wood yesterday bought out the remaining 70% stake in Esure from Lloyds Banking Group. Esure is his joint venture with the former HBOS, and deals in car and home insurance business.

Wood already owned 30pc of the group along with his fellow managers. And according to the recent buyout Wood will acquire the remaining 70% by paying around £185m to Lloyds. Esure was formed in 2000 as a joint venture by Peter Wood and the then Halifax Bank of Scotland.

Lloyds acquired the Esure holding when it merged with Halifax in 2008. However, it has its own branch-based insurance businesses and did not want to expand further into the competitive car insurance market.

According to the deal Lloyds' share will be taken up by a new company, Esure Group Holdings, led by esure chairman Peter Wood. The new company has been formed as a result of a management buyout.

Wood, who is paying around £185m for Lloyds' 70pc stake in the business, obtained funding from Tosca Penta Investments, a new private equity vehicle raised and managed by Penta Capital.

Esure is the number five company in car insurance, with a smaller presence in home, travel and pet insurance, but has only ever made small profits. Esure staff will still continue to be employed by Esure Services, Lloyds said.