IAG bought the UK's fifth-largest motor insurance broker Hastings in 2006 along with a related underwriting business for £140 million ($286 million). Chief executive Mike Hawker described the acquisition as the "perfect entry point" to the British market.

After racking up huge losses in a soft British motor insurance market, the business, run by local entrepreneur Neil Utley, was sold in 2008 as part of a £23.5 million management buyout. With increased investment, a refocus of its strategy and a change in market conditions, something of a turnaround followed.