Managers of IAG companies in the UK are understood to be planning a management buyout of the businesses, according to a UK trade press report.

IAG UK MD Neil Utley is said to be orchestrating a buy-out of Hastings, Advantage and possibly Equity Insurance Brokers, according to UK trade journal Insurance Times.

UK broking magnate Peter Cullum is tipped as a potential bankroller, while Hastings CEO Ed Fitzmaurice and Advantage CEO Keith Charlton are also linked to the discussions.

Mr Utley would become non-executive chairman of the new operation following a buyout, and Equity Insurance Brokers would be sold to a third party, probably UK insurer Swinton, which Insurance Times says is in “advanced sales talks” with IAG.

The shedding of the UK assets was announced by IAG CEO Mike Wilkins in July. He has since booked a $350 million writedown on the British operations.

Only specialist motor underwriter Equity Red Star will remain under IAG control after the sale of UK operations.

Analysts say there is likely to be renewed interest in IAG’s UK assets due to a slight recovery in the motor market.

An IAG spokesman told insuranceNEWS.com.au discussions are continuing with interested parties and the insurer is “exploring all avenues of maximising shareholder value, including selling the mass market businesses as a whole or separately”.

“We are pleased with the progress, particularly given prevailing market conditions.”