Deal is finalised after receiving regulatory approval
IAG has finalised the sale of Equity Red Star to Aquiline Capital Partners.
The private equity firm bought the motor insurer for £87m in December 2012, and has now received regulatory approval to complete the deal.
IAG managing director and chief executive Mike Wilkins, speaking at the time of the sale, said: “We believe the sale option delivers the best available outcome for IAG shareholders, particularly in light of the continuing challenging economic and industry conditions in the UK market.
“It also allows us to concentrate on our strategic priorities of accelerating profitable growth in our home territories of Australia and New Zealand, which in the 2012 financial year represented more than 90% of the group’s gross written premium (GWP), and on increasing our Asian footprint. It remains our target for Asia to represent 10% of the group’s GWP, on a proportional basis, by 2016.”
The insurance group also sold the rest of its UK business, Barnett & Barnett and NBJ, to a management buy-out.
IAG has said it is expected to incur a net loss of about £149m as a result of the sales.
No comments yet