Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IAG gets ACCC tick on Wesfarmers’ insurance takeover

IAG gets ACCC tick on Wesfarmers’ insurance takeover

By Suze Metherell

March 26 (BusinessDesk) – Insurance Australia Group, New Zealand’s largest general insurer, has gained approval from Australian Competition and Consumer Commission for its A$1.845 billion purchase of Wesfarmers’ insurance underwriting business.

But the Australian owned company, which trades in New Zealand under the State, NZI and AMI brands, is looking to buy Wesfarmers’ WFI and Lumley Insurance brands, and is still waiting for approval from New Zealand’s equivalent competition regulator, the Commerce Commission, as well as the Reserve Bank of New Zealand and two other Australian regulators.

New Zealand’s Overseas Investment Office approved the deal earlier this month.

The Commerce Commission extended the deadline for its decision by a month to the end of April, and has received nine submissions, including one which the submitter asked to remain private.

Insurance Brokers Association New Zealand have expressed concerns over competition in the market. After the proposed merger, IAG would have a 52 percent New Zealand market share, with the second largest competitor Suncorp’s Vero at 25 percent, it said in its submission. Suncorp’s submission to the Commerce Commission opposed the merger in New Zealand.

Multisure Risk Managers, the Motor Trade Association, Bus and Coach Association, the Rental Vehicle Association, and the Collision Repairs Association all made submissions to the commission over the merger, expressing concerns about competitiveness in the insurance industry.

In Australia, however, the ACCC found “no objection” to the takeover.

IAG and Wesfarmers were “the first and fifth or sixth-largest general insurers in Australia, respectively” and are also the nation’s largest rural insurers.

“The ACCC found that, while the proposed acquisition would reduce the number of key underwriters from six to five for packaged farm insurance and crop insurance in Australia, the level of existing and potential competition in this market would be expected to constrain the merged firm,” Rod Sims, ACCC chairman said in a statement.

IAG announced the deal last December and is confident the transaction will be completed by June 30.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news