New South Wales motoring body NRMA has dumped almost half of its stake in Insurance Australia Group Ltd (ASX:IAG) valued at $445 million, according to Fairfax Media.
NRMA has reportedly met with IAG to discuss the future of its relationship after allegedly breaching a key business agreement by offloading the stock.
Fairfax says NRMA has explored the formal separation of the two bodies, but that any attempt to cut ties could end with a dispute over the motoring body’s historic logo.
NRMA is a registered trademark owner of the framed wing logo.
IAG is Australia’s largest insurer, spun out of NRMA in 2002.
Insurance Australia Group reported a profit of $205 million in the six months to 31 December 2010.
IAG Price at posting:
$3.40 Sentiment: None Disclosure: Held
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