Last week RBS sold its remaining Direct Line Group shares amounting to a 28.5 per cent stake in the company worth £1.1bn, growing the total raised from the divestment to £4.5bn.
Bailhache joined RBS’ insurance division in late 2011 to handle comms for the EU-mandated spin-off of the bank’s insurance businesses.
The comms director role, which included a direct reporting line to the CEO and membership of the executive committee, will not be replaced to "increase the cost efficiency of Direct Line Group's executive leadership team".
In an announcement the company said Bailhache is leaving "having played a key role in establishing the group's reputation and communications capability during its successful separation and divestment from RBS Group".
The statement went on to say that Bailhache had been instrumental "in contributing to the development of [Direct Line Group's] reputation as an industry thought leader".
Bailhache joined RBS from HSBC where he was head of the group press office. He was formerly MD in the financial services division of Financial Dynamics (now the strategic comms arm of FTI Consulting) and City editor of newspaper The Business.
Bailhache commented: "I'm proud to have played a part in the successful separation and divestment of Direct Line Group, in helping to establish its reputation for delivering on what it said it would do as a listed company, and developing recognition for it as an industry thought leader on many key issues. I wish Direct Line Group every success in its continuing transformation."
Direct Line CEO Paul Geddes added: "I and the board thank Rob for his advice through the separation and divestment of Direct Line Group from RBS Group, and his support in helping to nurture Direct Line Group's reputation as a London Stock Exchange-listed public company. We wish him well for the future."