Latitude sells Hallmark insurance to St Andrews

Latitude Group has entered into an agreement to see its Hallmark insurance business to St Andrews Insurance Group for $20.3 million.

Latitude is expected to record a post-tax loss of approximately $30 million on the sale, including good will and other intangible asset write-downs.

The transaction was announced to the Australian Securities Exchange (ASX) today with Latitude saying the sale of the Hallmark business would allow Latitude to focus entire on its core business while ensuring Hallmark customers would be managed by a dedicated business which would meet continuing obligations to policyholders.

Commenting on the move, St Andrews chief executive, Matthew Way said that his firm had been attracted to Hallmark because it was a strong business with a talented team which would help build scale and expand the St Andrews footprint across Australia.

Latitude said that the Hallmark business had made an immaterial contribution to its net profit after tax in the first half and being largely closed to new business during the COVID period of financial years 2020 and 2021.