Provident Financial (PF) has sold its subsidiary Colonnade Insurance Brokers Limited to Swinton Group Limited for £27m.
PF intends to concentrate its motor insurance activities on underwriting and believes that the Colonnade's business as a motor insurance broker is better placed as part of a large insurance broking group.
PF expects a profit on the disposal of Colonnade and a consequent increase in consolidated net assets of £4.1m.
In addition, goodwill of £14.8m that had previously been charged to reserves will be written back to the profit and loss account resulting in a net loss on disposal of £10.7m.
This loss will be separately disclosed, on the face of the consolidated profit and loss account, as an exceptional item.
