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| Subject: Aviva Plc | |
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Author: IAG completes CGU, NZI buy2-January-2003 |
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Date Posted: 09:08:30 01/02/03 Thu IAG completes CGU, NZI buy 2-January-2003 Insurance Australia Group (IAG) has finally bedded down its $1.9 billion acquisition of the Australian and New Zealand operations of the UK’s biggest general insurer, Aviva Plc, confirming today the transfer of ownership of CGU in Australia and NZI in New Zealand. Insurance Australia Group chief executive Michael Hawker said he was pleased the businesses would now operate as one company united under the Insurance Australia Group banner. “Together our combined group has some of the most respected insurance brands in this part of the world- NRMA Insurance, SGIO, SGIC, CGU, Swann Insurance, NZI, State Insurance and Circle,” Mr Hawker said. “Merging the best of the groups enhances our ability to deliver quality products, service and benefits to our customers, people and the communities in which we operate. “At the same time it's a logical step in our strategy to improve shareholder returns by diversifying by product, distribution channel and geography.” IAG announced the acquisition in October last year, saying it expects the acquisition to be earnings per share positive in the second year following acquisition (pre-amortisation of goodwill arising from the acquisition), with EPS increasing by 10-15% in the third year following acquisition. IAG received ACCC approval for the acquisition in late November and the Federal Treasurer’s approval in December. The acquisition increases IAG's annual gross written premium by 58% to $5.6 billion. Synergies are estimated at $160 million. At 1554 AEST IAG shares were 1c lower to $2.73 [ Next Thread | Previous Thread | Next Message | Previous Message ] |