Oriel sells its general insurers

ORIEL HAS sold its general insurance broking division to Jardine Insurance Brokers for pounds 5.4m in a move it said would allow it to concentrate on its specialist insurance activities.

Nigel Cayzer, Oriel's chairman, said the group considered itself the market leader in its specialist businesses but that the general insurance broking division was 'one of a pack, and quite near the back of a pack'.

The sale included Allied Insurance Brokers, the original core of the group and the name under which it traded until 18 months ago. Other subsidiaries sold included CGA Insurance Brokers (Scotland) and Armstrong Salmond. In 1991, the activities sold made a pre-tax profit of pounds 836,000 and had net assets of about pounds 400,000.

The sale accompanied Oriel's announcement of interim pre-tax profits down 25 per cent at pounds 1.2m. The pounds 5.4m from Jardine will leave Oriel with net cash and will produce an exceptional profit of about pounds 1.5m at the year-end.

The interim dividend was increased from 1.8p to 2p a share.