Leading insurance company Insurance Australia Group (IAG) has entered into agreement with New Zealand insurer AMI which is expected to be completed by February 2012.
The acquisition of AMI will boost IAG’s position in the NZ market with one of the countries most renowned iconic insurance brands.
The Group has taken the opportunity to execute its projected strategy which included increasing profitable growth in both its home markets Australia and NZ. IAG’s managing director Mr Mike Wilkins believes the deal will bring attractive returns in the future and has said “the transaction enhances our position in New Zealand and demonstrates our commitment to that market”.
AMI has been in search of an investor since April last year when the earthquake devastation rattled the NZ insurance industry. IAG will not be taking over any outstanding liability relating to the natural disasters due to government assistance and reinsurance cover.
IAG has announced the acquisition of NZ’s second largest general insurer will cost the business just under $300 million and will be funded via internal resources and are confident about the long-term outlook for the NZ insurance industry.
IAG’s acquisition of AMI who specialise in general insurance including home, contents and vehicles, is expected to increase IAG’s income by around 30 percent.
By Krystal Ayoub
Please note Quotesonline Insurance News is an information service provided by third parties Insure 247 Australia doesn’t warrants the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service