Anglo-Irish financial services group Miller Fisher, whose shares have collapsed in the past year following a slump into losses, has sold its Homecare Holdings subsidiary in the UK to the British group CPP Holdings for £4.45 million sterling (#7.05 million).

Homecare provides theft and accidental damage insurance for mobile telephones and other electrical products and also provides warranty insurance. CPP is initially paying £2.2 million in cash for Homecare but is also taking over Homecare's bank debt of £2.25 million.

In the year to December 1999, Homecare contributed £240,000 to Miller Fisher's pre-tax profits. The sale is expected to give rise to an exceptional profit for Miller Fisher and the proceeds will be used to reduce debt.

Miller Fisher's chief executive, Mr Kevin Kenny, said: "Underwriting mobile telephone insurance and related products is not part of our core strategy for the future of developing third-party administration and support services for the insurance and financial services industries."