Insurance Australia Group Limited (IAG) has announced the sale of all its UK operations following the completion of its strategic review.
The sale is expected to occur through two separate transactions, with the Equity Red Star (ERS) business being sold to private equity investment firm Aquiline Capital Partners for £87m.
The ERS sale is subject to regulatory approval and expected to be completed in the second half of the financial year ending 30 June 2013.
The smaller specialist commercial broking business Independent Commercial Brokers (ICB) is to be sold to a consortium led by the existing management team.
IAG Managing Director and Chief Executive Officer Mike Wilkins said that the firm believed the sale option was the best outcome for IAG shareholders, particularly given challenging economic and industry conditions in the UK.
Category: Insurance News