QBE Europe thinks it can do a better job than IAG in making personal lines motor insurer Equity Red Star pay, according to speculation in UK media outlet Insurance Age.

It says the deal for the IAG subsidiary could be finalised as early as February. This comes just six months after QBE was knocked back in its attempts to acquire IAG.

At IAG’s AGM two weeks ago, CEO Mike Wilkins said the company’s plan to exit its mass-market distribution businesses, including the branch network of Equity Insurance Brokers, was well under way.

“Discussions are continuing with interested parties, and we’re exploring all avenues of maximising shareholder value, including selling the mass-market businesses as a whole or separately,” he said. “We are pleased with the progress, particularly given prevailing market conditions.”

An IAG spokesman told insuranceNEWS.com.au there is no further update to these comments.