Fremont General canceled plans for a spinoff.

The Santa Monica-based insurer, which had reported in September that it planned to sell off some of its casualty lines, said it scrapped that strategy because it would produce a tax liability that would be “unfair” for current shareholders, said Treasurer James R. McNiel. Fremont has hired the investment banking firm of Salomon Bros. to evaluate possible alternatives, including sale of Fremont Indemnity through a public offering or to a specific buyer.