Sharechat Logo

Insurance Australia reviews British operations, may sell them

Thursday 17th May 2012

Text too small?

Insurance Australia Group said it has begun a strategic review of its British operations which may result in them being put up for sale.

“One of our key strategic priorities is to return the UK to profitability,” said Mike Wilkins, managing director of IAG, which operates under the NZI, State Insurance and now AMI brands in New Zealand.

“Given the progress towards that goal in the opening half of the current financial year, we believe the time is right to consider our longer-term plans for the business and the best way to maximise shareholder value,” Wilkins said.

The British business reported an A$5 million insurance loss for the six months ended December, down from the $121 million loss in the same six months a year earlier.

The review is appropriate given current economic conditions in Britain, Wilkins said.

The remediation program for the British business is continuing and there are “early signs of government action on necessary industry reform,” IAG said. “These include, but are not limited to, refining the business' strategy to a more focused specialist motor offering and exploring options for a potential sale of all or part of the business.”

IAG shares don't trade on the NZX but it has NZ$325 million of 25-year subordinated bonds listed here. The “A-” rated bonds, issued late last year, last sold on May 15 at $104.50 per $100 face value.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report