IAG seeks to buy Lumley

The Commerce Commission has received an application from IAG (NZ) Holdings seeking clearance to acquire 100 per cent of the shares in Lumley General Insurance (NZ). IAG supplies personal and commercial insurance products across the country, with most sold under the AMI, State and NZI brands. Lumley, which is ultimately owned by Australian company Wesfarmers Ltd, offers a range of personal and commercial insurance products, all of which are distributed through independent brokers and other intermediaries. When considering a proposed merger, the commission decides if competition lost in a market when two businesses merge is substantial. It only gives clearance if it’s satisfied a merger is unlikely to have the effect of “substantially lessening competition”.