Motor insurance group Admiral is in sale talks over its loss-making German car insurance business.
The Cardiff headquartered FTSE 100 company has entered into exclusive discussions with Itzehoer Versicherung in respect of the sale of AdmiralDirekt.
In a statement Admiral said: “The group remains focused on continuing the profitable growth of UK operations and on building profitable, growing, sustainable businesses in Spain, Italy, USA, and France.”
Admiral said that AdmiralDirekt will continue to operate as normal. Since launching in 2009 Admiral has found the German car insurance market its most challenging.
In the first half of this year AdmiralDirekt made losses of £1.6m, having posted losses of £2.2m in the second half of 2009. In its interim results this year Admiral said that its strategy of increasing car insurance rates in Germany had resulted in a 25% fall in premiums. The number of cars insured also fell 17% to 31,500.
Source : Wales Online
