IAG has completed the sale of its UK motor business after receiving all regulatory approvals, it announced today.

It sold motor underwriter Equity Red Star to private equity company Aquiline Capital Partners for £87 million ($128.9 million).

It follows the sale of its UK broking business Independent Commercial Brokers. At the time, IAG CEO Mike Wilkins said selling would “deliver the best available outcome for IAG shareholders”.

IAG expects a net loss after tax of about $240 million from the sale this financial year, in addition to hundreds of millions of dollars in writedowns and losses incurred since it bought the UK operations in 2006.

Last financial year the UK business posted losses of $13 million and writedowns of $297 million, contributing to a 17.2% fall in IAG’s net profit to $207 million.