iSelect says “recent volatility” in its business is behind the decision to call off talks about a possible takeover deal by US private equity group Providence Equity Partners.

The listed comparator will instead pursue CEO Scott Wilson’s growth strategy and proceed with a previously announced plan to buy back up to 10% of its shares in the open market.

Talks with Providence included providing due diligence information, but iSelect says there are now “no reasonable prospects… of a board-recommended transaction being achieved at a price and on terms that are in the best interests” of shareholders.

“Accordingly, the board has determined that all discussions with Providence and other parties should now cease, and the company focus on operational and capital management initiatives.”

The share buyback will be carried out over the next year and funded from the cash balance.

iSelect told shareholders at last month’s AGM management is working to cut the cost of running its health insurance comparison business. It estimates this will reduce overheads by $1.2 million during the year.

The comparator made a net profit of $9.6 million in the year to June 30, up 54% on the previous year.