QBE ponders bids for rivalsBy Anthony KlanApril 08, 2006 QBE...

QBE ponders bids for rivals
By Anthony Klan
April 08, 2006
QBE Insurance said yesterday that it would consider making a bid for rivals Insurance Australia Group or Promina Group if it continued to outperform those companies on the share market.

Promina has been mooted as the most likely takeover target, after it upgraded its 2006 earnings estimates on the back of a 9.8 per cent lift in full-year after-tax profit.
QBE has played an active role in the consolidation of the Australian insurance sector in recent years.

In May 2004 it paid $765 million to ING's Australian general insurance and underwriting business for the 50 per cent stake in the Mercantile Mutual joint venture QBE did not already own.

A local take over would involve cash rather than scrip as QBE has substantial cash reserves. Any large takeovers, locally or abroad, would not be hostile, Mr O'Halloran said.