Management buys out Hastings Direct

Hastings, Advantage and the Equity Insurance Group brands insure.co.uk, insurepink.co.uk and insureblue.co.uk have been acquired through a management buyout from Insurance Australia Group.

This was led by Edward Fitzmaurice, Chief Executive of Hastings and Equity Direct, and Keith Charlton, Chief Executive of Advantage Insurance.

The deal has been financed by private investors and makes Hastings and Advantage one of the largest privately-owned insurance groups operating in the UK. The new company employs around 830 people.

In a statement issued this week the new team at the Collington Avenue company said that it intended to branch out into other forms of insurance.

Mr Fitzmaurice told the Observer: "We are extremely pleased to announce the management buyout of Hastings Direct and Advantage Insurance Company. This move will secure the future of the businesses for our staff and customers, of which there are more than 400,000.

"Hastings Direct has made huge strides this year and we look forward to building the business in the UK motor and household personal lines market and becoming the insurer of choice for the UK consumer.

"We have put a lot of investment in the business in the last six months with a 1m refurbishment of the building in Bexhill and a recruitment drive. This is fantastic news as we will bring more of the operations into Bexhill."

Earlier this year the insurance company wound down its business in call centres in Manchester and Leicester with a loss of 300 jobs. But it has recruited more than 150 extra staff in Bexhill in the last few months - bringing the total head count to approximately 830.

Mr Fitzmaurice said he had 'very exciting plans' for Hastings Direct but could not give a definite answer as to how many new jobs would be created.

He said: "It depends on the size of the business and the speed in which it grows."

Mr Fitzmaurice said the firm will operate as a mass market, personal lines motor, household and travel insurance broker through with a renewed focus on marketing and brand development.

More than 80 per cent of its current business deals with car insurance.

The broker will also expand its household insurance operations from its Bexhilll centre.