Equity Red Star has unveiled plans to cut 200 jobs and become a broker-only insurer as part of an overhaul to restore profitability. Six regional offices in Leeds, Manchester, Birmingham, Bristol, Glasgow and Ireland are to be closed.
The insurer will sell or exit its home and personal accident lines of business to focus solely on motor. The home business brings in annual gross written premium of £15m, while the personal accident business is “even smaller”, according to Equity chief executive Ian Parker. It is also reviewing possible sales of its Equity Insurance Partnerships affinity broker and its 25% stake in underwriting agency Arista.
As well as the cuts, Equity is investing £20m in a new IT and service infrastructure, which it says will result in annual cost savings of £10m.
Via KIM GCD