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Daily Insurance Industry News
Wednesday 23rd of May 2018
January 14, 2008

Erinaceous Puts Insurance Division Up For Sale

by Stewart Douglas

Story link: Erinaceous Puts Insurance Division Up For Sale

Under fire property services firm Erinaceous has today announced that it is willing to listen to offers for its insurance division following several high profile moves for the division from within the insurance industry over the last few months.

The move comes following an instruction to accountants and business analysts Deloitte to find potential buyers for the division, which it is thought will help raise capital to consolidate its property management services with a view to solidifying its financial position after what has been a difficult year for finances at the group.

After a year of financial delinquincy, the move is seen as an attempt to raise money in order to strengthen the group’s financial position, after its share price fell by some 90% over the course of 2007, according to reports in mainstream financial media. According to reports from sources close to the situation, Deloitte has already been in touch with a number of insurance companies over a potential acquisition.

It is also thought that certain private equity groups may be interested in acquiring the insurance division of the company, and indeed there have been some takeover rumours relating to the firm as a whole, linking with Axa and Towergate, as well as property investor Vincent Tchenguiz amongst others.

Additionally, HBOS had bid £320 million for the group last year, but later pulled back from the deal, which it had been thought would otherwise have proceeded and sealed the future of the troubled property management service.

It remains to be seen whether the sale of the insurance division, which accounted for in excess of one third of the company’s overall profits over the last year, will ultimate save Erinaceous financially, and help bring back financial security to the group.

 

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