Aviva, the world’s fifth-biggest insurer, joins a growing list of global companies exiting Australia to focus on their domestic markets in the grip of a global financial crisis. Car Insurance and Home insurance sectors in australia are a big market
NAB, Australia’s biggest lender, pipped AMP Ltd and others to clinch the deal – its first acquisition under new CEO Cameron Clyne. National Australia Bank Ltd (NAB) will pay US$660mil for most of British insurer Aviva Plc’s Australian businesses to become the country’s dominant investment platform provider and insurance underwriter
NAB shares rose 1.76% to A$22.49, while the benchmark share index was up 0.48%.NAB, which has identified wealth management, insurance and its advisory business as key growth areas, said yesterday the purchase would dent its Tier-1 capital by about 15 basis points, but forecast A$70mil in annual pre-tax savings. Insurance Claim Secrets REVEALED!
Aviva’s Asia Pacific chief executive Simon Machell said the company was on the lookout for potential acquisitions in Indonesia, Thailand and Vietnam, although demand for investment products looked set to remain subdued across the region.
The deal would lift NAB’s earnings from wealth management to about 10% of the group’s total from about 7% now, Halls estimated, noting Commonwealth Bank of Australia Ltd earns about 14% of its profit from wealth management.
Aviva website : http://www.aviva.com/
Nab Website: – www.nab.com.au National Australia Bank Ltd. (ASX)
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