GMAC confirms plans to sell Provident

Markerstudy is set to battle it out with IAG for motor insurer Provident.

Market sources said Markerstudy and IAG were both looking at a deal, which is likely to be completed within a three-month timeframe.

Last week Provident’s parent company, troubled US-giant GMAC, confirmed its intention to sell the Halifax-based business.

In November, Insurance Times reported that GMAC was reviewing it insurance operations, including Provident.

GMAC snapped up Provident for £170m in May 2007, although it is likely to be sold at a considerably lower price.

Marketstudy bought Zenith Insurance at the end of last year and also acquired underwriters from QBE’s personal lines motor team.

Markerstudy refused to comment. An IAG spokesman said it refuses to comment on speculation of this type.