Ensurance has announced plans are underway to sell its Australia-focused underwriting arm, with ongoing talks already at “advanced stages” with an unrelated third party.

The listed insurance agency made the disclosure in its first-half results last week, presenting Ensurance Underwriting as a “discontinued operation” in the earnings report.

“The board is currently in advanced stages of negotiation to dispose of Ensurance Underwriting Pty Ltd to an unrelated third party,” the report says.

“Negotiations are at an advanced stage and for this reason, the directors consider the going concern basis of preparation to be appropriate.”

The company declined to provide further information when contacted by insuranceNEWS.com.au.

Ensurance Underwriting provides intermediaries with “fast, simple, reliable and comprehensible” construction insurance via its customised online platform.

Its insurance products offered include latent defects, owner builder and trades liability.

If the sale is finalised it would mean Ensurance will focus almost exclusively on the UK market, where significant investments have been made to build its presence there.

The UK business performed strongly in the December half, with gross written premium up 296% to £7.7 million ($15.2 million). It recently opened an office in Manchester, further expanding its presence outside of London.

“The company expects this growth to continue at an accelerated rate, supported by the release of new products targeting new and growing markets, and the impact of annual insurance policy renewal cycles, as potential new customers approach their annual renewal date,” Ensurance says.

The UK business offers about nine products, including from security provided through partners such as Lloyd’s, Swiss Re and Axa XL.

Ensurance maintains the business is on the right track, despite posting an overall first-half net loss of $2.02 million.

It says the cost saving measures undertaken over the past two years, including the disposal of its non-core Australian brokerage business, have placed the company on a “clear path to positive cashflows.”