Insurance Australia Group Ltd said on Monday it had agreed to buy the insurance underwriting businesses of Wesfarmers Ltd, which includes the business trading under the Lumley Insurance brand in New Zealand.
On Friday, the Commerce Commission said it had received an application from IAG (NZ) Holdings Ltd (IAG) seeking clearance to acquire 100% of the shares in Lumley General Insurance (NZ) Ltd.
The commission is due to make its decision by Friday 24 January.
IAG’s New Zealand chief executive, Jacki Johnson, said the Lumley operations would be brought together with IAG’s NZI business, securing its position as the leading provider of insurance solutions through the country’s trusted broker network.
“Lumley in New Zealand has very complementary strengths, such as its expertise in the commercial motor vehicle & professional indemnity insurance segments, and IAG will look to build on these strengths to broaden our offering to our customers & partners.”
Lumley in New Zealand offers commercial insurance products through brokers and personal insurance through a partnership with Westpac (NZ) Ltd.
This transaction is part of a wider acquisition by IAG of the insurance underwriting companies of ASX-listed Wesfarmers, trading under the WFI & Lumley Insurance brands, for $A1.845 billion. Ms Johnson said the acquisition was expected to be completed in the second quarter of calendar 2014.
Attribution: Company & commission releases.