IAG acquires NZ's AMI
Insurance Australia Group (IAG) has moved to acquire New Zealand general insurer AMI for $288 million.
IAG announced the acquisition on the Australian Securities Exchange (ASX) today, saying it excluded all liabilities relating to the earthquakes which have affected New Zealand's Canterbury region.
It said the acquisition represented a step in the strategy to accelerate profitable growth in its home markets of Australia and New Zealand and was expected to be earnings per share accretive in the first full year of ownership, excluding integration costs and amortisation of identified intangibles.
Announcing the move, IAG managing director Mike Wilkins said the acquisition represented a unique opportunity that delivered on IAG strategic priorities.
"The acquisition brings together New Zealand's top two direct personal lines insurers - IAG-owned State Insurance and AMI," he said.
Wilkins said the acquisition added nearly 30 per cent to IAG's existing New Zealand premium base and was expected to generate at least NZ$30 million a year in net synergies within two years.
AUTHOR
Mike Taylor
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