Australia’s largest insurer QBE has denied it is in formal merger talks, after a report emerged saying it could be the target of a $20 billion acquisition by German Allianz.
Australia is proving to be a popular and attractive market for overseas insurers.The the regulatory regime is more stable than in emerging markets while the economy and population are growing quicker than in most other developed markets.
The German newspaper «Handelsblatt» (paywall) has reported that Allianz CEO Oliver Baete met with QBE group Chief Executive John Neal before Christmas, and had informally offered a deal of $15 per share for the Australian company.
The Handelsblatt report does not say the talks between Baete and Neal represent takeover negotiations.
Hot Market Down Under
The Australian insurance sector has seen several large insurance deals in recent years and the trend is likely to continue into 2017 when ANZ is expected to dispose of its own insurance units.
Acquisitive Japanese insurers such as Dai Ichi and Meiji Yasuda who are struggling for growth in their domestic market, are known to be keen on the insurance arm of ANZ's wealth unit.
Distribution Fight
finews.asia reported in October on the deal that saw National Australia Bank finalise the sale of 80 percent of its MLC life insurance subsidiary to Nippon Life Insurance for $2.4 billion.
Standard Chartered Bank and Allianz recently announced a 15-year bancassurance agreement for the distribution of Allianz’s general insurance products, including travel, personal accident, fire and motor insurance products, to Standard Chartered’s Retail Banking clients in five key markets across Asia.
Allianz paid $200 million for the distribution rights.
