Suncorp has reportedly lost interest in securing the Commonwealth Bank’s (CBA) general insurance division.
According to The Australian Financial Review’s Street Talk column (paywalled), Suncorp has dropped out of the race for the business, leaving Insurance Australia Group (IAG) and Allianz to contest the sale. Managed by Goldman Sachs, the process is expected to conclude by the end of April.
Street Talk said Suncorp shareholders will welcome the group’s withdrawal from the CBA insurance division sale process, adding that the company is not afraid of mergers and acquisitions to grow its business and earnings, but doesn’t want to end up paying large premiums for the assets needed to do so.
The decision will mean that Suncorp can continue zeroing in on tidying up its insurance and banking divisions, with the ultimate aim of growing them in their own right.
According to Street Talk, Suncorp and IAG are Australia’s biggest general insurers, both writing policies equal to $8 billion to $10 billion annually in premiums.