Macquarie Capital has bought a stake in UK motor insurer Equity Red Star from private equity group Aquiline Capital Partners.

It has acquired a 19.9% interest, a spokesman told insuranceNEWS.com.au.

IAG sold Equity Red Star to Aquiline in April for £87 million ($154 million), as it exited UK operations that had incurred hundreds of millions of dollars in writedowns and losses.

Macquarie Capital acted as adviser to Aquiline on the purchase.

Equity Red Star, which dates back to 1946, is a Lloyd’s underwriting business and one of the top 10 motor insurers in the UK.