Disposal of Access Underwriting Agencies Ltd ("AUA")
18 July 2006
The Board of Jelf Group plc, has reached an agreement to dispose of the existing book of business, including the database of supporting retail brokers, of AUA to Higos Insurance Services Limited, a specialist wholesale broking business. The transaction is due to complete on 31 July 2006.
AUA was acquired as part of the acquisition of the Goss Group Limited. The decision was taken to dispose of AUA because its activities, as a wholesale broker, are not core to the strategy of the Group. The disposal of AUA will have a positive impact on the Group's profit and loss account.
The proceeds of the sale will take the form of an initial consideration followed by a further payment based on client retention in 12 months, and is in line with current market practice.
Enquiries: Alex Alway, Group Chief Executive,
Jelf Group plc
01454 272727
Alastair Cade/Jonny Franklin-Adams,
Daniel Stewart & Company plc
020 7776 6550