IAG (iag.ASX:Quote,News) will sell its UK insurance branch network to Swinton Group for £50 million and the Hastings and Advantage businesses through a management buy-out for £23.5 million.
The transactions combined with the cost of closing Lloyd's syndicate Alba and underwriter Diagonal, will be recognised as a pre-tax loss of £40 million ($88.04 million) for the 2009 financial year, IAG said in a statement.
"We believe the transactions announced today represent the best outcome available to IAG shareholders, particularly in light of the deterioration in market conditions which has occurred since July,'' chief executive Michael Wilkins said in the statement.
Shares in IAG fell 1 cent to $3.99 as of 1.27pm (AEDT).
The insurer also reclassified its 2008 results to reflect the new segment reporting being adopted this year.
Additionally, the company advised that its first-half results will now be reported on February 26 instead of February 27.
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