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IAG Progresses Approval for Acquisition of AMI
1 March 2012
IAG Progresses Approval for Acquisition of AMI
Insurance Australia Group Limited (IAG) today announced it had received approval from the New Zealand Commerce Commission and Overseas Investment Office for its acquisition of the AMI insurance business.
IAG is now awaiting final approval from the Reserve Bank of New Zealand to enable the acquisition to complete.
The acquisition will accelerate IAG’s profitable growth in one of its core markets of New Zealand.
AMI writes approximately NZ$360 million of annual premium and will increase the Group’s New Zealand premium base by nearly 30 per cent. Combining AMI and IAG in New Zealand is expected to generate at least NZ$30 million per annum in net synergies within two years.
CEO of IAG’s New Zealand business, Ms Jacki Johnson, said the acquisition reflected the positive long term outlook for the New Zealand insurance market.
“New Zealand is regarded as a home market for IAG, and we are confident that it will continue to offer attractive returns into the future.
“We look forward to receiving final approval so we can bring certainty for AMI customers and staff,” she said.
The acquisition excludes all liabilities relating to current and future claims from the earthquakes which have impacted the Canterbury region.
About Insurance Australia Group Limited
Insurance Australia Group Limited (IAG) is an international general insurance group, with operations in Australia, New Zealand, the United Kingdom and Asia. Its current businesses underwrite over $8 billion of premium per annum, selling insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann and The Buzz (Australia); NZI and State (NZ); Equity Red Star (UK); and NZI and Safety (Thailand). For further information please visit www.iag.com.au.
About IAG’s New Zealand operations
IAG’s New Zealand operations wrote over NZ$1.2 billion of premium and accounted for nearly 12% of the Group’s GWP in FY11. Through the State, NZI and Business Partners affinity brands, IAG is the largest underwriter in New Zealand. Insurance products are sold directly to customers under the State brand, and through intermediaries such as brokers and agents under the NZI brand. Personal and commercial products are also distributed under third party brands by corporate partners such as large financial institutions. For further information please visit www.iag.co.nz.
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