NRMA Insurance hunts for fund managers

NRMA Insurance is looking to aggressively grow its funds management operations with an ac-quisition, according to chief executive Eric Dodd.

NRMA Insurance is looking to aggressively grow its funds management operations with an ac-quisition, according to chief executive Eric Dodd.

Dodd told yesterday’s Business Sunday program the group will look for a funds management acquisition ahead of a general insurance purchase. Dodd’s comments follow speculation NRMA Insurance might be making a play for HIH’s general insurance operations. HIH suspended its stock on the Australian Stock Exchange earlier today pending a major announcement on the structure of the business.

Dodd said last month NIGL could make acquisitions of up to $2 billion without increasing its share capital, and the group has also established a $1.5 billion debt issuance program for addi-tional purchasing power.

He said yesterday competition issues would prevent a purchase of HIH.

"The parts that ... are on the market we would probably have ACCC (Australian Competition and Consumer Commission) issues with for a start," he said.

"We're very satisfied with our market shares in those businesses and we're not looking closely at that at this stage."

Dodd said parts of Queensland-based bancassurance group Suncorp Metway would be "very complementary" to NIGL's business. But he said NIGL would "never do anything aggressively" and was not planning to approach the group.

The group was looking at several opportunities in financial services, possibly offshore, although overseas expansion was not a top priority, he said. Dodd said NIGL didn't have a specific target.