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

Chubb

18/12/2025 02:57

** 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))