The owner of Hastings Direct and Advantage insurance is to put the insurance businesses up for sale because of shrinking profit margins. insurance Australia Group (iAG) today said it will "conduct a staged exit" of the businesses and of Equity insurance Brokers, another UK outfit. it will keep specialist motor underwriter Equity Red star. the retreat from the UK marks yet another disastrous foray by an Aussie insurer into Britain. AMP posted a A$5.5 billion (£2.7 billion) loss in 2003 after its expansion here failed. iAG signalled it is looking for a trade deal, saying: "We will look for natural owners who can derive greater value." it bought Hastings, famed for its Harry Hastings logo, and Advantage in 2006 for a total of A$350 million, and the next year paid £570 million for Equity insurance Brokers. the group has spent about £820 million since 2006 to expand in Britain, but the move has been a disaster and has failed to deliver expected returns.

At the time of iAG's purchase of Hastings, then chief executive Mike Hawker described Hastings as "a perfect entry point to the UK market".

Responding earlier this month to reports that Hastings could be closed down, Edward Fitzmaurice - who is also chief executive of Equity Direct - said he was "very excited about the future for us", and threatened to discipline any staff leaking to the media.