The price for the business, originally tipped at $1 billion, is reportedly going up
Price expectations for Commonwealth Bank’s general insurance unit are on the rise.
The unit was originally expected to sell for about $1 billion. However, some are now expecting the business to go for $1.2 billion, according to a report by The Australian.
However, a sale could still be weeks away, since CBA is currently prioritising the merger of Aussie Home Loans with Lendi and the sale of a 55% interest in Colonial First State to Kohlberg Kravis Roberts for around $1.7 billion.
Insurance Australia Group and Suncorp are considered frontrunners to snap up CBA’s insurance business, with Suncorp especially motivated to gain insurance market share, The Australian reported.
Read more: New player vying for Commbank general insurance unit
However, some predict that IAG and Suncorp may have trouble getting the okay from the Australian Competition and Consumer Commission, given their dominant market positions.
QBE and Germany’s Allianz are also reportedly vying for the business, and some think they may be in a better position than IAG and Suncorp since neither would face the same competition hurdles.
Tokio Marine is also thought to be among the final contenders for the business, The Australian reported.
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.LinkedIn | Email
