Australian insurance group QBE has denied weekend reports that German insurance giant Allianz has approached it regarding acquiring the firm.
German paper Handelsblatt said at the weekend that Allianz had made an approach to acquire QBE, with a price of AU $15.00 per share mooted, valuing the insurer at around AU $20 billion.
Allianz has yet to comment about the suggested takeover ambitions, but QBE has responded to media speculation.
“While it is QBE’s policy not to comment on rumour or media speculation, QBE confirms that it is not in discussions with Allianz or any other potential buyer,” the company reported.
Australia would be an attractive diversification market for Allianz, with Asia Pacific also a draw given QBE’s ongoing expansion into the region.
On the reinsurance side the pair would recognise significant savings across reinsurance buying, although quite what a deal would mean for QBE’s reinsurance arrangements with Warren Buffett’s Berkshire Hathaway would be anyone’s guess.
At this stage media reports suggest that Allianz’s interest in QBE is likely real, but the offer more a case of testing the water. Analysts suggest that QBE could probably command a higher valuation, so it is possible that other potential acquirers may emerge.
