The Business Sale Report reports that Insurance Australia Group Ltd, the car and home insurer, has (IAG) has put three of its UK insurance businesses up for sale.

The businesses on the block include the broking division of Equity Insurance, Advantage Insurance and Hastings Insurance. This comes as a surprise to many as IAG only entered the UK market a couple of years ago.

The car insurance broker Hastings Direct and Advantage Insurance were picked up for £140m at the end of 2006, followed by Equity Insurance Group for around £570m. IAG is reportedly hanging on to its profitable motor underwriter, Equity Red Star. Lexicon Partners have been appointed to handle the sale.

In general the expansionist move to the UK was fairly disastrous and did not deliver anywhere near the returns anticipated.

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