Ensurance steps up UK expansion, eyes sale of local business
Ensurance will direct more resources to growing its UK operations and part with its local retail brokerage business, as part of a new strategy.
The listed broker and insurance technology group has already received non-binding proposals for the brokerage assets.
“These proposals are in their infancy, with no certainty as to timing and pricing of a potential disposal,” Ensurance says in a statement to the Australian Securities Exchange.
“The board is considering the merits of these offers and will announce any material developments to shareholders as they occur.”
If Ensurance proceeds with the sale, its remaining business in Australia will comprise mainly wholesale broking and underwriting agent fees.
The group has been pushing into the UK, having received regulatory approval to move from being an authorised representative to a managing general agent.
Executive Chairman Tony Leibowitz told insuranceNEWS.com.au the UK business would benefit from the “working capital to achieve the huge potential it has portrayed”.
A share placement was announced in April to support the UK expansion and pay down debts.
The company incurred a $5.58 million net loss in the half-year to December.