City Investing will spin off its Home Group unit.

The company reported that its directors voted to distribute all the common stock of Home Group, the parent of Home Insurance, to the holders of City’s common stock. Distribution will occur following the receipt of regulatory approvals, the completion of payment or provision for payment of City’s outstanding indebtedness and liquidation preferences for its cumulative preference stock, and a recapitalization of Home Group to increase its authorized common stock. Distribution of the stock is expected in June.