Royal Liver to sell six brokerages
Published 18/05/2010 | 05:00
ROYAL Liver Assurance has confirmed plans to sell off its six Irish insurance brokerages after its Irish advisory division suffered losses of almost €18m last year.
Capital Financial Planning, known as Citadel until March, originally consisted of a network of 70 self-employed brokers plus six wholly owned brokers.
The network of independents was abandoned last December, and accounts just filed for Capital Financial Planning show the business has decided to wind down its remaining activities.
In a section marked "future developments", Capital's directors say they "anticipate implementing the strategy to manage an orderly disposal of subsidiary companies", which are listed as the six brokers.
A spokesman for the company last night said the sale process was "progressing well". "We are not in a position to disclose details at this stage," he added.
Royal Liver's decision to effectively close its Irish advisory subsidiary comes after a bruising 2009, when the company made losses of close to €17.8m on a turnover of less than €1.4m, prompting other Royal Liver companies to forgive more than €5.7m of intercompany debt.
The losses were largely linked to an €11.6m charge for the "impairment and valuation adjustment of subsidiaries". Capital was also hit by €1.7m in redundancy costs for the year, as well as a €645,000 "compensation" payment to one director for loss of office.
A spokesman confirmed that 21 jobs were lost when the brokerage network was wound down, but declined to reveal any details of the director compensation package.
Another Capital director, George McGregor, has since left the Irish firm's board. "He [McGregor] was dismissed from the Royal Liver Group and therefore is obliged to resign as a director [of related companies]," the spokesman said.
"No payoff was deemed appropriate."
Capital's on-the-market brokerages include Hegarty Financial Management, McCarthy Investment Services and Kinane Life & Investments.