Liability adjuster 'not core' to QBE underwriting
QBE has begun exclusive talks with the management team of Garwyn Liability Adjusters to relinquish its interests in the liability specialist.
The insurer has decided to sell off the adjuster because in the long term Garwyn is "not core" to its underwriting businesses.
A QBE spokeswoman said: "QBE confirms that it has entered into discussions with Garwyn management on an exclusive basis that may or may not lead to a buy-out of the business led by management and backed by new capital providers."
Garwyn managing director Declan Treanor confirmed that a number of capital providers were involved, but would not give names. Last month Hermes Private Equity helped the management team of specialist adjuster AMG to buy out that company for £62m.
But Treanor said that Hermes was not one of the providers.
He said: "Discussions are advancing quickly. We are pleased to get this opportunity and I hope it ends with us getting the management buy-out.
"There is a possibility that we can achieve a deal by Christmas."
He added that QBE was not intending to sell the liability adjuster out on the open market if the talks failed.
"If things go to plan we expect to remain the preferred provider of QBE's major loss and construction liability work," said Treanor.
Treanor is leading the buy-out team which includes the company's directors and staff.