The group's pre-tax profits for the year to 31 March will be restated from pounds 11.8m to pounds 3.8m. CE Heath shares fell 4p to 320p.
The sale of CE Heath & Co Australia, holding company of CE Heath Underwriting and Insurance (Australia), will end the UK group's exposure to claims from the run-off of discontinued accounts.
The purchaser is CE Heath International Holdings, a company separately quoted on the Australian stock exchange, in which CE Heath has a 23 per cent stake. When HIH was floated in June 1992 CE Heath's Australian underwriting subsidiary gave indemnities to HIH on a discontinued aviation underwriting account.
HIH has agreed that CE Heath will face no further liabilities on the troubled aviation account.Reuse content