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Insurance Business | 08 Jan 2014, 07:51 AM Agree 0
The regulator is reviewing IAG’s acquisition of Wesfarmers’ underwriting arm to ascertain whether the move will lessen market competition.
  • Jak | 08 Jan 2014, 09:37 AM Agree 0
    What the !!
    So the sale has been completed, but only now is the ACCC conducting an informal review.
    Let's face it, the ACCC could not track an elephant with bleeding hemorrhoids through a snow field, so its informal review is as likely to do anything other than confirm the sale, and duplicate the ACCC's stellar achievements with such other coporate duopolies as, say, Woolworths and Coles.
    The ACCC announcement is simply another tax payer funded 'Yes Minister' episode.
    Humbug, and welcome to 2014 !
  • Brave Broker | 08 Jan 2014, 09:37 AM Agree 0
    Based on Lumley's performance or lack of it over the past 5 years I can tell you what I think should happen to the Lumley Executive Team!

    A bunch of people who are sending BDM's round to broker offices trying to flog "The all new Office Package" when others have been playing with the class for 10+ years should be fired! This is only the latest laugh I have had at Lumley's expense over the past twelve months! They are such a basket case that surely brokers can't be thinking it will cause a monoply. They have been insignificant for 5 plus years! Bring back the old MMI crew!

    One the ACCC can not loose sleep on, surely.

  • Bill Oddie | 08 Jan 2014, 10:11 AM Agree 0
    Saying it creates a duopoly (such as Coles and Woollies), is really a smack in the face to the other competitors in Australia. Besides from which, the larger they are, the larger target they become for those focussed niche players. It seems most insurers only operate in certain regions and specific product offerings that they want to anyway. Its also probably better than ending up with another HIH...
    The real battleground will be NZ where Lumley is about the only insurer currently not committed to the AON CPF 'bucket' (which is deemed to be about NZ's 3rd largest 'insurer'), and potentially IAG's recent purchase of AMI.
  • Rod Parsons | 08 Jan 2014, 12:53 PM Agree 0
    Jak - Not sure of the politics of it all but love your comment
    "Let's face it, the ACCC could not track an elephant with bleeding haemorrhoids through a snow field."

  • Ex-Lumley staff member | 08 Jan 2014, 01:53 PM Agree 0
    I hear you "Brave Broker" and that's what happens when you remove 300 years of Insurance management experience built at Lumley and replace them with bean counters and yes men. Pains me to look at the shadow of a Company they are now compared to the halcyon days pre 2008. RIP Lumley.
  • In the Mix | 09 Jan 2014, 08:54 AM Agree 0
    Brave Broker - Couldnt agree more - MMI was a supurb insurer with some of the best people in the industry, particularly in NZ!
  • Curious | 09 Jan 2014, 09:57 AM Agree 0
    As a matter of interest what has MMI to do with Wesfarmers/Lumley?
  • Brassy Broker | 09 Jan 2014, 10:09 AM Agree 0
    Interesting to read some of the comments on here, especially the "halcyon days pre 2008".

    Was this the period when Lumley were a dumping ground for distressed risks that no-other Insurer would write with an account that haemorraged money, compared to the current Lumley that has cleansed their book over the past 3 years since these "bean counters and yes men" have been in-situ and now has a clear strategy of looking to write profitable, well-managed business with sustainable pricing?

    I know which Lumley I prefer.
  • Ex-Lumley staff member | 09 Jan 2014, 12:45 PM Agree 0
    That may have been your experience "Brassy Broker", but from someone on the inside I can tell you that Lumley in those days was probably the most profitable Insurer in the market with returns on capital the envy of our competitors. Post 2008 when the business has allegedly improved, they've struggled to make a profit ? Think you are listening too much to the spin being communicated to the market whilst they were looking for a buyer...........
  • Curious | 09 Jan 2014, 01:52 PM Agree 0
    Interesting to have two opposite viewpoints.
    Were you listening to spin Brassy broker?
    Why did you leave such a good operation ex Lumley staff member?
  • No name | 25 Jan 2014, 12:15 AM Agree 0
    Buy a niche and profitable small insurer, sack all the staff that made it what it was and then attempt to turn it into a profitable mass market insurer by buying share at the lowest point of the market cycle. Success strategy? And no I am not an ex employee.
  • Heman | 06 Feb 2014, 01:06 AM Agree 0
    No one discusses about WFI. One of the best trusted brand of wesfarmers.
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