AA in insurance sale talks
Post reports that the AA and Hastings have held talks over a potential general insurance partnership.
According to the report, the AA said it was considering spinning out its general insurance business, and confirmed it had discussed the sale of the unit to rival Hastings. However in a separate statement, Hastings said that talks ‘had ceased’.
A spokesman for the AA said, ‘The AA regularly reviews all strategic options, including whether a spin-off of any of its business lines would unlock further value and be in its shareholders’ interests.
‘We confirm that we did have preliminary discussions with Hastings in early summer to explore a possible combination of the AA’s insurance business with Hastings.’
The Financial Times reported that the potential sale talks had divided the AA board, and had sparked a physical altercation between former chairman Bob Mackenzie and insurance boss Michael Lloyd.