News: UPDATE 2-Allianz eyes Australia's QBE Insurance - source

• Informal approach made, no proposal on price made - source
• No basis for speculation of corporate proposal - QBE
• Offer could value QBE at A$20 bln - Handelsblatt

(Recasts, updates with Reuters source)

SYDNEY/FRANKFURT, Jan 30 (Reuters) - German insurer Allianz has made an informal approach to Australian peer QBE Insurance (QBE) to canvass its interest in a takeover deal, according to a source familiar with the situation.

The source, who was not authorised to speak publicly about the matter, told Reuters no acquisition price had been proposed to QBE, Australia's biggest insurer.

German newspaper Handelsblatt on Sunday reported Allianz had floated an offer of A$15.00 per share, which would value QBE at A$20 billion ($15.11 billion). That would represent a 22 percent premium to QBE's closing price of A$12.33 on Friday.

Allianz declined to comment. In a statement emailed to Reuters, QBE said it had a "clearly articulated strategy" which did not include industry consolidation.

"There is no basis to speculation either that this strategy is under review or that QBE has received a corporate proposal," the Australian company said.

Allianz Chief Executive Oliver Baete has said the German insurer is looking for opportunities to make acquisitions but that it is not easy to find attractive targets at a reasonable price.

The company said in November it could return 2.5 billion euros ($2.68 billion) from its budget for acquisitions to shareholders in the form of share buybacks.

M&A has cooled off in the insurance sector after a bumper year in 2015, with many players saying valuations had become too high.

But Australia is seen an attractive market for foreign insurers because the population and economy are growing faster than in most other developed markets and the regulatory regime is more stable than in emerging markets. ($1 = 1.3270 Australian dollars) ($1 = 0.9336 euros)