Trade Me is selling its insurance operation LifeDirect.
The business has been sold to a former owner, Mark Solomon, for an undisclosed sum.
LifeDirect allows consumers to research, compare and buy life and health insurance online
Trade Me chief executive Anders Skoe said LifeDirect, which was bought in 2013 to offer a further revenue stream, no longer fits.
“We don’t think Trade Me is the best long term owner for LifeDirect, it’s a profitable business with great growth potential but we only have so many resources and we can’t prioritise LifeDirect over the many other opportunities we have.”
Mr Solomon is involved in a Wellington financial services company, Crest, and was involved in the merger of LifeDirect with another on line insurance business in 2009.
Mr Skoe took over as Trade Me chief executive mid last year after the company was bought by British investment firm APAX for nearly $2.6 billion.
He had previously run a similar sort of business in Norway called Finn, and said on arrival that he was looking to develop Trade Me’s growth potential] through new busineses.
This article was originally published on RNZ and re-published with permission.