Insurance Australia Group Limited (ASX:IAG) has bought AMI Insurance, New Zealand’s second largest general insurer, for $290 million.
The acquisition excludes all liabilities relating to the earthquakes affecting the Christchurch and Canterbury regions.
Combining IAG and AMI in New Zealand is expected to generate at least $23 million a year in synergies within two years. But integration will cost $30 million.
In fiscal 2011 IAG posted a net profit of $338 million.
