Green light for $303 million insurance group takeover

Insurance Australia Group (ASX: IAG) has completed a $303 million takeover of New Zealand’s AMI Insurance.

The Reserve Bank of New Zealand gave final approval for the deal, IAG says.

IAG’s acquisition excludes all of AMI’s Christchurch earthquake-related liabilities, which will be owned and backed by the New Zealand government.

IAG’s New Zealand chief executive, Jacki Johnson, said the takeover would give certainty to AMI customers.

“New Zealand is regarded as a home market for IAG, and we are confident that it will continue to offer attractive returns into the future,” Johnson says.

IAG owns several well-known insurance brands such as CGU, NRMA and SGIO and has operations in Australia, New Zealand, Thailand and the United Kingdom.