Advantage places motor book into run-off

Advantage is placing a private car and motorbike book into run-off in preparation of a possible stock market listing.

The insurer will stop accepting new business shortly and run-off remaining business over the next 12 months.

All the business affected is coming from brokers outside of intermediaries Hastings and Renew. Those two companies will continue to supply motor business.

A Hastings spokesman said: "At the recent annual industry conference held by Hastings Direct, it was announced that given the rapid progress made by the company and the confidence in this progress being sustained going forward, a flotation of the business is an option being considered in 2012.

"A flotation could include its major insurance partner, Advantage Insurance Company, which is domiciled in Gibraltar and the strategic objectives of the two businesses will continue to be aligned over the coming months.

"As a consequence, Advantage Insurance Company has taken the decision to cease writing business through brokers outside of the group (Hastings Direct and Renew Insurance).

"Advantage will stop accepting new business shortly and existing business will run off over the following 12 months."

Advantage follows a well-trodden path of insurers who have placed large books of motor business into run-off during the last year, including QBE, NIG and MMA-owned Gateway Insurance.

Hastings chairman Neil Utley hopes to build the intermediary into a £700m premium income powerhouse before flotation in 2012.