BUZZ-Macquarie sees potential Chubb-AIG merger as floor for Aussie commercial rates

Reuters12-18 10:57
BUZZ-<a href="https://laohu8.com/S/MQG.AU">Macquarie</a> sees potential Chubb-AIG merger as floor for Aussie commercial rates

** Analysts at Macquarie say a merger of Chubb CB.BN and American International Group AIG.N could help put a floor under Australian commercial insurance premium rates, even if it does not reverse the broader downtrend

** Media reports emerged earlier in the month that insurance firm Chubb had made an informal approach for AIG

** Macquarie says talk of a potential Chubb–AIG deal highlights mounting pressure on global insurers as commercial premium rates roll over, a backdrop that keeps downside risks for earnings in focus

** Combining the sixth- and eighth-largest players in the Australian market would modestly reduce fragmentation in a sector with 40 APRA-regulated insurers, easing competitive intensity at the margin - Macquarie

** Brokerage adds merged group would rank third in Australian commercial lines, but overall concentration would remain low, limiting any step-change in pricing power

** The Australian insurance sector is currently dominated by companies including Insurance Australia Group IAG.AX, QBE Insurance QBE.AX, Suncorp SUN.AX and Allianz ALVG.DE

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment