Australia's IAG to buy UK insurer for $1.1 bn
Insurance Australia Group (IAG) has announced it will buy British motor insurer Equity Insurance Group for £570 million ($1.13 billion).
By Agencies |
SYDNEY: Insurance Australia Group (IAG) has announced it will buy British motor insurer Equity Insurance Group for £570 million ($1.13 billion).
IAG chief executive Michael Hawker said the purchase complemented the company’s takeover of British insurance broker Hastings last September.
“On any measure, the acquisition of Equity makes strategic and financial sense,” Hawker said in a statement to the Australian Stock Exchange. “Equity is an ideal fit with our acquisition criteria in stable yet profitable markets like the UK — it’s a motor-led insurance business with consistently high margins in its markets and a strong management team.”
IAG has expanded into developing Asian markets including Thailand, Malaysia and Singapore and is in the final negotiation stages to purchase a stake in China’s second largest general insurer, China Pacific Property Insurance.
IAG shares are suspended Monday and Tuesday as it completes A$600 million ($468 million) share placement to partially find the deal.
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