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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news