UK motor insurance news

Providential Financial considers cheap car insurance business sale

Providential Financial is putting its cheap car insurance business, Provident Insurance, up for auction.

Several approaches by companies interested in the motor insurance section of Providential prompted the decision to auction it off, although the identity of interested parties is not yet known.

Providential revealed that it was considering whether selling off the car insurance arm would be more profitable for shareholders than keeping it within the currently demerging international business.

Katrina Preston, Bridgewell anaylyst, commented on the Provident Insurance deal, saying that potential buyers would probably be small, intermediated insurance companies or private equity firms.

She went on: "We believe the business could fetch around 225 million pounds, based on the net present value of the division's through-the-cycle earnings."

Providential Insurance specialises in cheap car insurance for women and motor insurance for older drivers. Its online car insurance brand is yesinsurance.co.uk, although it also owns a number of motor insurance brokers. Up until 2005 it had seen rising profits, although recently these have dropped off as a result of fierce competition in the car insurance industry.

More Car Insurance News

Cheap car insurance firm expands into new offices
Named drivers get up to 50% discount from Tesco Car Insurance
Online car insurance initiative for American motorists
Car insurance company warns of winter breakdowns
Cheap Road Angels from online car insurance firm
Heavy wind and rain prompts Highways Agency alert
Car insurance firm issues claim fraud warning
Crazy car insurance claims revealed by Lloyds TSB
Online car insurance specialist slates new policy
Online car insurance firm appeals over trademark
Online car insurance firm urges ladies to shop around
New online car insurance provider launches
2006 excellent year for cheap car insurance
New road causes cheap car insurance concern
Online car insurance firm reveals fear of public transport
Safe Speed warns of 20mph zone dangers
£2m collected in road tax evasion fines
Window poses cheap car insurance threat
Drivers alerted to online car sale scam
Online car insurance site issues price warning
Motor insurance company issues claim time warning
Researchers praise motor insurance company
Cheap car insurance firm reveals funniest claims
Motor insurance brokers merge
Speeder can get cheap car insurance once more
New price comparison site offers car insurance savings
6 out of 10 think it is safe to drive after drinking alcohol
70% of drivers prepared for wintry weather
Motor insurance quotes to rise in 2007
Car accidents cost UK economy £1bn

News Archive

January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
Car insurance news 2005

For more information, please see:

• Why choose duck2water?
• How to buy online
• Breakdown cover
• Glossary
• Customer testimonials

Get a cheap car insurance quote now!