The Reserve Bank of New Zealand has given clearance for the proposed buyout of Lumley General Insurance (NZ) Ltd by Insurance Australia Group (IAG) to go ahead. 

The RBNZ said it is, "satisfied that Lumley General Insurance Limited would continue to meet the licensing criteria set out in section 19(1)(a) to section 19(1)(m) of the Insurance (Prudential Supervision) Act 2010, should the proposed transaction occur".

Last month the New Zealand Commerce Commission (NZCC) released its decision to grant approval after delaying it three times.

In a statement it said it was satisfied the proposed acquisition “will not have, or would not be likely to have, the effect of substantially lessening competition, for personal and commercial insurance products".

The proposed acquisition forms part of a wider acquisition by IAG’s parent, Insurance Australia Group Ltd, of the Australian and New Zealand underwriting businesses of Wesfarmers Ltd, Lumley’s parent. The $1.845 billion deal was revealed in December.

More to come...