Lumley for sale

Lumley Insurance is the latest financial services company to be put up for sale. The shareholders, United Kingdom-based Edward Lumley Holdings Ltd, says it is putting its Australian and New Zealand businesses for sale after receiving a number of expressions of interest from potential buyers.

The group provides a range of insurance, information technology and risk management services including general and life insurance underwriting, premium financing, insurance broking and related services.

Despite a challenging economic climate the Lumley Group in Australasia has been doing well. The shareholders say that the year to June 30 turnover topped A$1 billion and trading profit was up 22% compared to the previous year.

"Current market conditions are highly favourable and significant further revenue and profit growth is expected this year," the company says.

Underwriting performance has been excellent for the general and life insurance businesses in Australia and New Zealand.

In 2002 the life company also continued to perform profitably and has been increasing its market share in the personal risk protection markets.

The shareholders expect that the combined Australian and New Zealand businesses will be sold together along with the brand.

Lexicon Partners in London has been appointed to conduct the sales process.