Erinaceous puts insurance division up for sale

January / February 2008

Erinaceous's has given  it's accountants and business analysts Deloitte instruction to find potential buyers for the insurance division. The report in the Sunday Telegraph said following it's financial difficulties in 2007 with it's share price falling by over 90 per cent. The insurance arm made an adjusted profit of £14.4m, out of a total group profit of £41.2m.

In July 2007 HBOS tabled a £320 million bid for the group but later withdrew.  The Erinaceous property insurance portfolio includes names under Erinaceous Insurance Services Ltd like HomeLet and Letsure who are major players in the UK residential letting market.

Over 20 of the insurance division's staff have to moved to Towergate over the past few months including Andy Halstead the Managing Director.

Last November the group put two senior staff members on gardening leave. Deputy chairman Neil Bellis and chief operating officer Lucy Cummings. On the 7th February the board announced that Nigel Turnbull had resogned as Chairman and Director and that Lord Razzall a non-executive Director had been appointed Chairman.

The 14th January 2008 Press release from Erinaceous Group Plc stated

"Re Strategic Review


The Board of Erinaceous has noted the growing speculation regarding the Group's insurance division, Erinaceous Insurance Services ("EIS").

As previously announced, and as part of its ongoing strategic review, the Board is looking at the optimal way to reduce the Group's unsustainable debt levels.

EIS is a highly profitable business and enjoys strong and leading positions in attractive niche markets. The newly appointed senior management team within EIS  can see significant opportunities for developing the business which is largely insulated from the issues facing the parent. However, following a significant number of approaches from parties interested in acquiring EIS, the Board has decided to review whether a sale of EIS at this time would be in the best interests of the Group.

It should be stressed that this is a preliminary review of third-party interest in EIS and, as such, is part of the overall strategic review process during which all other alternatives, such as a possible debt for equity conversion, are
still being actively investigated. The Board still believes that, regardless of any solution, it is probable that existing shareholders will see the value of their holdings significantly diluted.

Further announcements will be made as appropriate.  14 January 2008"

Please note, all details on any of the Insurance industry Press Releases displayed on this site are provided by insurance companies, organisations, Government departments and media and jml Property Services does not take any responsibilty for their content or accuracy.

Return to Fact Files & Information Index

Return to Press Releases from the insurance industry