Tokio Marine Holdings has stepped up its investigation into the potential acquisition of a major Australian insurer. The company is reportedly believed to have dispatched executives to meet with people connected to IAG and Suncorp, increasing the likelihood that it is advancing its consideration of acquisition candidates.
Tokio Marine Holdings is reportedly stepping up its investigation into the potential acquisition of a major Australian insurer. Over the past 3 weeks, it is said to have dispatched executives and others to Australia, where they met with people connected to Insurance Australia Group (IAG) and Suncorp Group, which are viewed as potential acquisition candidates, as well as industry experts.
In July, the possibility reportedly emerged that Tokio Marine could acquire IAG or Suncorp for more than A$20 billion. The disclosure that it had met with additional parties has prompted views that its consideration of an acquisition may have advanced further.
QBE Insurance Group and Hollard have also been cited as acquisition candidates, but many in the market believe Tokio Marine is most interested in IAG or Suncorp. Some analysts have also said that Tokio Marine generally tends to target specialist insurers focused primarily on commercial insurance.
Tokio Marine is reportedly considering large overseas acquisitions as a means of deploying excess capital. This follows indications it gave the market in May of its intention to expand through major acquisitions in Australia and Canada.