Insurance Australia : ACCC approves IAG'S acquisition of Wesfarmers' Australian insurance underwriting business

Insurance Australia Group Limited (IAG) today announced it had received confirmation from the Australian Competition and Consumer Commission (ACCC) that it has no objection to IAG's acquisition of Wesfarmers' Australian insurance underwriting business, which operates under the Lumley and WFI brands.

IAG Managing Director and Chief Executive Officer, Mr Mike Wilkins, welcomed the ACCC's approval as a significant milestone on the path to successfully completing the acquisition in Australia and New Zealand. "Bringing together the businesses will provide us with enhanced capabilities to meet the needs of our customers and partners and provide them with a broader product offering," he said.

The Australian portion of the transaction remains subject to approvals from the Australian Prudential Regulation Authority (APRA) and the Federal Treasurer. In New Zealand, the acquisition needs to be approved by the New Zealand Commerce Commission (NZCC) and The Reserve Bank of New Zealand. The Overseas Investment Office issued its consent for the New Zealand portion of the transaction on 6 March 2014, while the NZCC has advised that it will now issue its decision on 30 April 2014.

IAG announced on 16 December 2013 that it had agreed to purchase the insurance underwriting businesses of Wesfarmers Limited for $1.845 billion. It remains the Group's expectation that the transaction will be completed by 30 June 2014.