CGU Insurance Limited announced today that it would acquire Fortis Australia Limited.
CGU Insurance Limited announced today that it would acquire Fortis Australia Limited.
Fortis operates under the brands VACC Insurance, Accident Insurance Mutual and AMEV Life.
CGU Managing Director Ian Balfe said the acquisition, which was subject to regulatory approval, would consolidate CGU's position in the Australian general insurance market.
"In the current environment, Fortis Australia Limited represents one of the last opportunities to acquire a significant general insurance operation in Australia," he said.
"Fortis is an ideal strategic fit for us. Through this acquisition, we have the unique opportunity to increase our overall market share and establish a strong position in chosen niche markets."
Mr Balfe said the acquisition would particularly benefit CGU-subsidiary Swann Insurance, which focuses on motor dealers and financial institutions.
Fortis Australia Limited is currently the tenth-largest private general insurer in Australia, with Gross Written Premiums of $285 million for the year to 31 December 2000.
The classes of general insurance risk written by Fortis Australia are primarily short-tail personal and commercial lines, with the portfolio weighted towards motor insurance - private and commercial motor insurance together account for almost half of the written premium.
Based in Melbourne, the Company has sales offices in all states. However, the eastern states and national accounts represent approximately 80% of business written.
Mr Balfe said the fact that both CGU and Fortis were based in Melbourne, provided CGU with a unique opportunity to pursue synergies from the acquisition, while retaining key customer relationships.
CGU is one of Australia's largest general insurers with over two million policyholders. It was formed in 1998 through the merger of Commercial Union and NZI Insurance. Both these companies had operated in Australia for over 100 years.
Globally, CGU is part of the world's sixth-largest insurance group CGNU plc, which has over $500 billion in assets under management.
Media Contact:
Chris Jackson CGU Communications Manager
(03) 9279 5210 or 0401 711 914