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Insurance Australia Group Limited (ASX:IAG) has welcomed clearance from Australia’s competition regulator to buy Wesfarmers Limited (ASX:WES) Australian insurance underwriting business.
IAG inked the $1.84 billion deal at the end of 2013 and expects the transaction to tie up by the middle of this year.
The acquisition includes Wesfarmers’ underwriting companies trading under WFI and Lumley Insurance brands.
IAG Managing Director and CEO Mike Wilkins says the acquisition will enable IAG to meet the needs of its customers and partners and provide a broader product offering.
The deal is still subject to regulatory approvals from organisations including the Australian Prudential Regulation Authority (APRA) and New Zealand regulators.
IAG improved its net profit by 39 per cent to $676 million in the first half of the 2014 financial year.
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