Aquiline buys Equity Red Star for £87m

The divestment was part of IAG's strategy to dispose of all UK operations. The transaction is expected to complete in the first half of 2013. ERS's existing pension fund liabilities will remain with IAG.

IAG's UK operations have reportedly been loss-making for several years. The group expects to incur a net loss after tax of around $240m for its UK business in the financial year 2013.

Aquiline saw off competition from Tungsten Corporation, the listed investment vehicle of Duke Street founder Edi Truell. Tungsten was at one point considered a front-runner in the race before talks stalled over historic liabilities.

Company
With roots dating back to 1946, ERS is a specialist motor insurer. The firm covers fleet, haulage, classic car, van, motorcycle, taxi, minibus, private car, agricultural vehicle, motor breakdown, household and personal accident insurance solutions.

ERS has been affected by rising bodily injury claims in recent years. The company was investigated by both Lloyd's of London and the FSA with regards to its reserving practices.

People
Jeffrey Wayne Greenberg is the founder and chairman of Aquiline Capital Partners.

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