Aussie insurer gets Comcom nod to buy AMI
Insurance Australia Group (IAG) has the all clear from the competition watchdog to buy the 'good assets' of failed Canterbury insurer AMI.
Insurance Australia Group (IAG) has the all clear from the competition watchdog to buy the 'good assets' of failed Canterbury insurer AMI.
The purchase excludes all AMI’s Canterbury earthquake liabilities, which will be taken over by the government.
All it needs now is approval of the Reserve Bank of New Zealand and the big Aussie insurer can push ahead with the purchase, expected to boost its stake in the general insurance market.
Commerce Commission clearance, granted this morning, follows approval for the purchase of the Overseas Investment Office.
Commerce Commission chairman Dr Mark Berry says the commission is satisfied the proposed acquisition will not be likely to substantially lessen competition in the national markets for house, contents, and motor vehicle insurance.
IAG is the country's largest underwriter and operates the State and NZI insurance brands.
A spokesperson for IAG confirmed its plans to buy AMI can't go ahead until it gets the approval of the Reserve Bank too and it won't make any comment on the purchahse until then.
IAG plans to transfer AMI's business, excluding its Canterbury earthquake liabilities, to a newly created company called AMI Newco. IAG will acquire 100% of the shares in this new company.
AMI writes about $360 million of annual premium.
Combining the two, in this country, is expected to boost IAG's premium base by almost 30% amd generate annual savings of at least $30 million-a-year within two years.
Georgina Bond
Thu, 01 Mar 2012
Thu, 01 Mar 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Aussie insurer gets Comcom nod to buy AMI
19134