Today Insurance Australia Group Limited (IAG) announced it had agreed to purchase AMI for NZ$380 million.
This acquisition enhances IAG’s leading position in New Zealand’s general insurance market. It is a unique opportunity that delivers on IAG’s strategic priorities and fits its operating model of delivering general insurance through a portfolio of leading local insurance brands – which will now include NZI, State and AMI.
AMI is one of New Zealand’s most iconic brands, with a proud heritage and strong customer loyalty. It adds nearly 30% to our existing New Zealand premium base so that we will touch over one million customers in a market we know well and is considered core to the Group’s operations.
Through this purchase our customers will have more choice in how they interact with us and access to a broader product set, our business partners will benefit from our increased scale and, importantly, our people will have more opportunities in a larger and stronger business.
IAG’s acquisition excludes AMI’s liabilities relating to the earthquakes. However, we will have an agreement to provide services to these customers.
IAG has also provided a commitment to the Government aimed at reassuring AMI customers in Canterbury. As well as acknowledging the Government’s Canterbury recovery objectives, IAG has confirmed continued availability of home insurance, at renewal and on transfer, for all current AMI policy holders in the region.
The acquisition remains subject to regulatory approvals. We look forward to completion of the purchase and welcoming AMI to our Group.