Insurer calls off merger with AA

Plans for the aa to merge its insurance business with Hastings have been called off.

The firms had preliminary talks but they have ended, Hastings said in a statement yesterday.

On Monday it emerged that the plans sparked a row among the aa board that ended in executive chairman Bob Mackenzie being sacked after a run-in with the head of the insurance division, Mike lloyd, during a company away day.

Hastings yesterday confirmed it ‘did have preliminary discussions with the aa regarding a potential partnership with its insurance division, which have ceased’. The aa said it ‘regularly reviews all strategic options, including whether a spin-off of any of its business lines would unlock further value and be in shareholders’ interests’.

last month the group also lowered its full-year forecasts and said its performance in the first half of the financial year, which started in February, had been hit.