Proactive Investors - Run By Investors For Investors

Hastings says talks about merger with AA insurance arm have ceased

AA confirmed it held preliminary talks with Hastings in summer to explore a merger of its insurance arm with Hastings. The talks ended without success.
AA's chairman Bob Mackenzie was dismissed last month for "gross misconduct"

UK insurer Hastings Insurance Group  PLC (LON:HSTG) said talks to combine its business with AA plc's insurance division have ceased.

In two separate statements, the companies confirmed media reports about holding discussions about a potential deal.

AA said the two held preliminary talks in summer to explore a merger of its insurance arm with Hastings.

READ: Hastings Group raises first-half dividend, says “on track for another year of profitable growth”

“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,” the group said.

Hastings said the talks have now ended.

“Whilst Hastings regularly reviews selective acquisition opportunities, its core strategy remains to deliver on its organic growth and its disclosed targets.”

The AA is still looking to spin out its insurance division, according to the Financial Times, which first reported on the plan.

READ: Analysts weigh in on insurers Hastings and Esure after government cuts Ogden discount rate

The plan had caused a rift between members of AA’s board. Bob Mackenzie was dismissed as AA’s chairman for “gross misconduct” after a physical altercation with insurance boss Michael Lloyd last month. 

View full AA. profile View Profile

AA plc Timeline

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use