IAG to buy Lumley Insurance

MICHAEL FOREMAN
Last updated 14:27 16/12/2013

Relevant offers

Industries

'Grey' used imports to test Toyota NZ's recall repairs Sky TV customers won't be forced on to Vodafone, companies tell regulator Decision close on Okiwi Bay finfish facility Stuff is turning 16, and so is Ben New era for Lotus in New Zealand and Australia Laura Ashley closes NZ stores, owes creditors $2.3m Bic clicks into its 60th year in New Zealand Wellington businesses taking on accessibility challenge Vocus' Australian purchase throws water on 2degrees speculation More jobs as Auckland factory boosts capacity

Insurance Australia Group (IAG) is to buy the underwriting businesses of Wesfarmers, including Lumley Insurance in New Zealand.

IAG New Zealand chief executive officer Jacki Johnson said the Lumley operations, which sells commercial insurance through brokers and personal insurance through a partnership with Westpac, would be combined with IAG's NZI business.

"Lumley in New Zealand has very complementary strengths, such as its expertise in the commercial motor vehicle and professional indemnity insurance segments and IAG will look to build on these strengths to broaden our offering to our customers and partners," Johnson said.

The Lumley purchase is part of a wider acquisition by IAG of the insurance underwriting companies of ASX-listed Wesfarmers, trading under the WFI and Lumley Insurance brands for A$1.8 billion (NZ$1.95b).

The sale is subject to approvals from the Reserve Bank, Commerce Commission and Overseas Investment Office, and Australian authorities, a process that is expected to take several months.

On completion of thesale, Wesfarmers expects to record a pre-tax profit of about A$700 million to A$750m in the second half of the 2014 financial year.

Wesfarmers said the sale did not include its insurance broking operations in Australia, New Zealand and the UK, or its premium funding businesses in Australia and New Zealand.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content