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CE Heath restates profits to pounds 3.8m after disposal

Tom Stevenson
Friday 01 July 1994 18:02 EDT
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CE HEATH, the insurance broker, will be hit by a further pounds 8m exceptional loss for 1993/4 following the sale yesterday of its ill-fated Australian underwriting subsidiary for a nominal Adollars 1m ( pounds 475,000), writes Terence Wilkinson.

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.

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