To make up the losses incurred
Guardian Holdings has planned to dispose off its failing UK motor insurance business by the end of the year, reported Trinidad and Tobago Express.
GHL has commenced selling its Zenith motor insurance subsidiary in the UK by writing off 100% of its goodwill, claims company.
As per the company, this amounted to $397m on GHL’s financial accounts up to its third quarter ended September 30. The other failed operations stands at about $499m so even though the performance of GHL’s other businesses produced an after tax profit of $241m. The group ended with an accounting loss of $655m at the end of the third quarter.
The company stated that Zenith has been put up for disposal which the company expects to get it done by the end of 2009.
Jeffrey Mack, group chief executive of GHL, said: “Zenith was an investment that did not work out the way we hoped when it was acquired in 2005. Now we have ring-fenced Zenith and it is no longer a drag on the business.”