Insurance Australia to sell UK business to Aquiline Capital

After the completion of a strategic review Australian insurer Insurance Australia Group (IAG)  said that it would sell its UK operations to a private equity group.

The company said in a statement to the Australian Securities Exchange, that it would sell its Equity Red Star business to Aquiline Capital Partners for $130 million.

It also concluded a sale of its specialist commercial broking business, Independent Commercial Brokers to a consortium led by the subsidiary's existing management team.

Further information on the deal which includes its Barnett & Barnett and NBJ brands would be released in due course, it said.

According to IAG managing director Mike Wilkins, the company believed, the sale option delivered the best available outcome for IAG shareholders, particularly in light of the continuing challenging economic and industry conditions in the UK market.

The agreement, which is subject to regulatory approval would be completed in the second half of fiscal 2013.