Hastings and AA Insurance held preliminary merger talks

Insurance Group Hastings held merger talks in the early summer with breakdown firm AA’s insurance business, the two companies revealed in stock exchange announcements this morning.

Hastings said the talks with AA Insurance Services have now stopped.

Both firms described the talks as “preliminary”.

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

The AA said: “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.

“We confirm that we did have preliminary discussions with Hastings in early summer to explore a possible combination of the AA’s insurance business with Hastings.”