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Insurance Business | 16 Dec 2013, 10:22 AM Agree 0
Wesfarmers has sold its underwriting unit for $1.845bn.
  • Alan | 16 Dec 2013, 10:43 AM Agree 0
    You would assume they would shut down Lumley finance or try and offload it given they sold CGU a few years back.
  • Robert Cooper | 16 Dec 2013, 11:28 AM Agree 0
    It will be sad to see the Lumley brand disappear as many of us started our careers with them.
  • Gary Hayward | 16 Dec 2013, 12:06 PM Agree 0
    The important issue with this announcement is the further concentration of the Industry within the grips of the BIG 3 which may not have such a big effect in the highly competitive direct retail market but will have the huge effect of dampening competition in the SME and small commercial areas as another competitor is swollowed up by one of the big 3. It will be just like the Personal insurance announcement in the last weeks where Vero / Suncorp have reduced commissions to brokers, so this acquisition will have the same long term effect of bringing tigher control on this area of the market and driving up costs to brokers and reducing income thus making it harder for them to survive. It's time the ACCC looks at some of these acquisitions and see what effect they bring to the Australian market.
  • Just An Observer | 16 Dec 2013, 12:19 PM Agree 0
    Hopefully IAG will have better, and quicker, results in regard to bringing WFI direct into line than QBE has had with sorting out Elders. Especially in the rural market.
  • Just An Observer | 16 Dec 2013, 12:31 PM Agree 0
    The next question is how long till Westfarmers sell Oamps?

    With some of the international brokers making recent announcements about growth and development in Mid & SME markets it may be just a matter of time before Oamps is snapped up by the likes of Aon or Marsh etc.

    Maybe even Austbrokers or Steadfast?
  • Incognito | 16 Dec 2013, 12:55 PM Agree 0
    OAMPS will follow suit before the end of the financial year.
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