Japan's Tokio Marine eyes insurer Suncorp as preferred takeover target, FT reports

Japanese insurer Tokio Marine has identified Australian insurer Suncorp as a preferred takeover target after reviewing several potential options, the Financial Times reported ‌on Tuesday, ⁠citing ⁠people familiar with the matter.

Tokio Marine reviewed several takeover targets over the past months, including Insurance Australia Group and Suncorp, as well as Canada's Intact Financial Corp, the report said.

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Two people ​with direct knowledge of ⁠the matter ‌told the FT that Suncorp ​had ​emerged as the preferred target ⁠for the Berkshire Hathaway-backed Japanese insurer, with ​the Canadian general insurer deemed too ​large.

The sources warned that discussions were ongoing and there was no certainty a deal would result, the report said.

Reuters could not immediately confirm the ‌report. Neither Suncorp nor IAG immediately responded to Reuters requests for comment.

Shares ​of both ​Australian insurers ⁠jumped nearly 5% after the news, LSEG data showed. Suncorp shares were last up 5.2%, while ​IAG shares rose as much as 4.8% before retreating slightly to trade 4.4% higher, as of 0139 GMT.