Insurance companies abandon acquisition plans

Insurance companies abandon acquisition plans

Insurance companies abandon acquisition plans Plans for Ironshore Australia to acquire Assetinsure Group have been abandoned after the parties failed to agree on certain commercial matters.

A statement by Assetinsure reads: “The transaction was complex and unfortunately, despite protracted discussions and negotiations held in good faith, there were certain final commercial matters that ultimately could not be resolved.”

Approval for the acquisition was received from APRA on 23 June 2014.

Assetinsure said the transaction was supported by the third parties with whom Assetinsure work closely. However, in the absence of agreement on the remaining commercial matters it was considered in the best interests of both parties not to continue further with the process.

Assetinsure says neither policyholders, business partners nor the sale of shares in the company have been affected.

Explaining how it affects policyholders, Assetinsure said: “Assetinsure is in a strong financial position as evidenced by the Capital Coverage Ratio which is regularly reported in APRA’s half-year statistics. Assetinsure’s Capital Coverage Ratio is well above industry average.”