http://www.copyright link/street-talk/qbe-insurance-piques-banker-acquir...

http://www.copyright link/street-talk/qbe-insurance-piques-banker-acquirer-interest-20170125-gtynu1

Investment banks are seeking to get close to QBE Insurance, which is firmly on the watch list of potential offshore acquirers, sources told Street Talk.

This column understands several investment banks have approached the $16.6 billion insurer about defence mandates.

QBE, which counts former Goldman Sachs executive Stephen Fitzgerald as a non-executive director, has a close relationship with the investment bank and has used its services in the past.
That includes working on QBE's first capital raise, a placement, after John Neal assumed the top job.

But it seems other banks are looking to muscle in on any corporate action at QBE.

Street Talk is not suggesting an offer is imminent but QBE has piqued the interest of bankers and offshore acquirers. That is despite its sprawling global operations and the fact the insurer's return-on-equity has lagged the sector in the view of some analysts.

In Australia, a QBE tie-up with Insurance Australia Group has been a dream deal for bankers, even though past attempts have failed.

China-based insurers and Allianz SE, Europe's largest insurer, are among global behemoths that are seeking out acquisitions and new distribution arrangements. Allianz last year earmarked as much as €3 billion for purchases and is also focussed on improving its combined ratio, which takes incurred losses and expenses and divides them by total earned premiums.

Allianz has in 2017 been linked to a joint bid for Italy's largest insurer Generali with rival Intesa and France's AXA, and this month Allianz also agreed to pay $US200 million for rights to distribute products through Standard Chartered in Asia.

Globally, insurers are focussed on gyrations in bond markets which have a bearing on investment returns and navigating competitive pressures.

Elsewhere in financial services, ANZ Banking Group has left open the option of listing its wealth business if an auction of the unit does not yield a suitable result.

It's understood an initial public offering has not been ruled out as an exit option ahead of formal sale documents being dispatched late next month. Goldman Sachs is running the sale.

ANZ's wealth unit consists of life insurance and funds management operations which is spurring a range of discussions in the industry about potential bidding partnerships.

Earlier this month, Street Talk revealed Zurich Insurance Group is in late stage talks with Credit Suisse to assist in its tilt at ANZ Wealth, while Deutsche Bank is in pole position to advise pan-Asian life insurer AIA Group.

Read more: http://www.copyright link/street-ta...quirer-interest-20170125-gtynu1#ixzz4Wws1IzP8
Follow us: @FinancialReview on Twitter | financialreview on Facebook