Wesfarmers
(ASX:WES) is reportedly set to expand its presence in the $24 billion Australian insurance market.
There are media reports today that the conglomerate will offer car insurance through its Coles stores and Kmart tyre and auto repair shops.
The Australian Financial Review newspaper reports that after a successful trial in Tasmania, Wesfarmers is looking to roll out Coles branded insurance nationally.
Coles’s push by into insurance is likely to be backed by a revamped customer loyalty program.
AFR newspaper reports that the products will be branded Kmart or Coles insurance and will be underwritten by Wesfarmer’s own insurance arm, which after earning $1.4 billion in premiums in 2009 is already positioned as Australia’s fifth largest general insurer.
Wesfarmers posted a $1.5 billion net profit in 2009, an improvement on the two years before.
