Erinaceous, the ailing property services group, has put its insurance arm up for sale. Sunday Telegraph

The company, which last year saw the value of its shares crash more than 90%, has instructed Deloitte, the accountancy firm, to find possible buyers for the group as one of a number of options being considered for the company.

Deloitte is understood to have contacted several insurers in recent weeks, asking if they were interested in the division, which provides cover for commercial property and has close ties with its property business. According to the company’s 2006 accounts, the insurance arm made an adjusted profit of £14.4m, out of a total group profit of £41.2m.

It is thought that potential bidders for the division could include insurance giant Zurich Financial Services, and Allianz Cornhill, with private equity bidders also likely.