Wesfarmers Is Selling Its Insurance Business To IAG For $1.85 Billion

Richard Goyder (R), CEO Wesfarmers answers questions from the press as Rick Allert, Chairman of Coles Myer looks on during the announcement of Wesfarmers takeover bid July 2, 2007 in Melbourne, Australia. Photo: Getty

Wesfarmers will sell its insurance underwriting business in Australia and New Zealand to Insurance Australia Group.

The $1.85 billion deal represents a $700 million profit over book value.

Shares were up 0.7 per cent after the announcement.

The underwriting operations include commercial lines of business, including the Lumley and WFI brands, and a fast-growing personal lines business which is sold through the Coles Insurance affinity partnership.

You can read the statement here.

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