AMI Insurance sold for $380 million
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AMI Insurance has been bought by Insurance Australia Group for $380 million.
As part of the deal, the Crown will take over ownership of AMI's Canterbury earthquake-related claims.
Finance Minister Bill English said that claims liability had been estimated at $1.8 billion.
About $1.3 billion of that amount will be offset by reinsurance, with the purchase price bringing the government's liability down even further.
As a result, the Treasury has estimated that the Crown's liability will drop from $335 million, in the last published set of full-year accounts, to about $120 million.
“The part of AMI dealing with earthquake claims – along with its reinsurance for those events – will be retained as a new Crown company and will continue to manage AMI's customers' earthquake claims,” Mr English said.
“This will ensure those claims are managed effectively and with the minimum of disruption.”
The new Crown company will be chaired by Nelson-based company director Ross Butler.
IAG’s New Zealand chief executive, Jacki Johnson, said the long established AMI general insurance business is an ideal fit for its existing insurance activities in New Zealand, and vowed to be a committed guardian of the AMI brand, its people and its customers in New Zealand.
IAG needs to obtain the consents from the Reserve Bank, Commerce Commission and Overseas Investment Office before the purchase can become unconditional some time early next year.
AMI chairman Kerry Nolan said in the meantime it’s business as usual, and AMI customers will not notice any difference in their normal day-to-day dealings with AMI or in the progression of their earthquake claims.
“When there are any changes that customers need to know about, we will contact them well in advance.”
Colin Williscroft
Fri, 16 Dec 2011
Fri, 16 Dec 2011
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AMI Insurance sold for $380 million
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