Direct Line has issued a firm response to a proposed takeover by Ageas, rejecting the approach as ‘unattractive’ and ‘highly opportunistic’.

In its statement on the conditional, non-binding indicative proposal received last month, the board of Direct Line said that it considered the proposal to be “uncertain, unattractive, and that it significantly undervalued Direct Line Group and its future prospects, while also being highly opportunistic in nature”.

It added that the firm is confident in its standalone prospects and restated that Adam Winslow, the new CEO who takes up the post on 1 March, has been tasked with refreshing the company’s strategy and operational focus, with the objective of returning to a sustainable level of operating profit over time.

The outlined proposal from Ageas was at a rate of 233p per Direct Line share comprising of a combination of cash and the Belgium-based insurer’s own shares, valuing the group at £3.1bn. Direct Line Group’s shares surged 23% on Wednesday after news of Ageas’ move emerged.