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QBE - QBE Insurance News Story

A$8.54 0.4  4.3%

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Sector
Financials
Size
Large Cap
Market Cap £5.74bn
Enterprise Value £8.08bn
Revenue £11.98bn
Position in Universe 51st / 1837

UPDATE 4-Allianz considers takeover of Australia's QBE - source

Mon 30th January, 2017 12:15am
* Informal approach made, no proposal on price made - source 
    * No basis for speculation of corporate proposal - QBE 
    * Offer could value QBE at A$20 bln - Handelsblatt 
 
 (Adds statement from QBE) 
    By Jamie Freed and Alexander Hübner 
    SYDNEY/FRANKFURT, Jan 30 (Reuters) - German insurer Allianz 
 ALVG.DE  has made an informal approach to Australian peer QBE 
Insurance  QBE.AX  to canvass its interest in a takeover deal, 
according to a source familiar with the situation. 
    The source, who was not authorised to speak publicly about 
the matter, told Reuters no acquisition price had been proposed 
to QBE, Australia's biggest insurer. 
    German newspaper Handelsblatt on Sunday reported Allianz had 
floated an offer of A$15.00 per share, which would value QBE at 
A$20 billion ($15.11 billion). QBE shares rose by 4.7 percent to 
$A12.91 on Monday. 
    Allianz declined to comment. QBE said in a statement on 
Monday it was not in discussions with Allianz or any other 
potential buyer.  
    QBE, one of the world's 20 biggest insurance companies, 
operates in North America and Europe as well as in Australia and 
New Zealand. 
    The company is an attractive target because it will benefit 
from a higher interest rate environment, said Shaw and Partners 
analyst David Spotswood. 
    "I don't think QBE would agree to a A$15 takeover bid," he 
said. That is not very high. Presumably there would be cost 
savings and claims management savings. In a two-year view they 
could probably get to A$15 by themselves." 
    Allianz Chief Executive Oliver Baete has said the German 
insurer is looking for opportunities to make acquisitions but 
that it is not easy to find attractive targets at a reasonable 
price. 
    The company said in November it could return 2.5 billion 
euros ($2.68 billion) from its budget for acquisitions to 
shareholders in the form of share buybacks.  urn:newsml:reuters.com:*:nL8N1DC0V8 
    M&A has cooled off in the insurance sector after a bumper 
year in 2015, with many players saying valuations had become too 
high.  urn:newsml:reuters.com:*:nL8N1BI4KH 
    But Australia is an attractive market for foreign insurers 
because the population and economy are growing faster than in 
most other developed markets and the regulatory regime is more 
stable than in emerging markets.   
     
($1 = 1.3270 Australian dollars) 
($1 = 0.9336 euros) 
 
 (Reporting by Jamie Freed and Alexander Huebner and Harro ten 
Wolde; Editing by Catherine Evans and Stephen Coates) 
 ((harro.tenwolde@thomsonreuters.com; +49 69 7565 1271; Reuters 
Messaging: harro.tenwolde.thomsonreuters.com@reuters.net)) 
 
Keywords: QBE INS GRP M&A/ALLIANZ
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