Ensurance is in “advanced stages of negotiation” to dispose of its Australia-focused underwriting business, Ensurance Underwriting.

The listed insurance agency made the disclosure in its December half results report. It has presented the business as a “discontinued operation” in the 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 comments when contacted by insuranceNEWS.com.au.

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

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

If the sale is finalised, it would mean Ensurance will focus almost exclusively in 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.

“This is significant, because as insurance policies are sold annually, customers are only presented with the opportunity to switch policies and providers when their policy is up for renewal.”

The UK business offers more than 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 last two years including the disposal of its non-core Australian brokerage business have placed the company on a “clear path to positive cash flows”.