Tokio Marine weighs takeover of Australian insurers, FT reports
Tokio Marine is reviewing Australian insurer takeover targets, reportedly favouring Suncorp over IAG. Shares of both firms rose nearly 4% on the news.
Japan's Tokio Marine has been evaluating potential acquisitions in Australia's insurance sector, with two of the country's largest general insurers emerging as candidates. According to the Financial Times, citing people familiar with the matter, Tokio Marine has reviewed a range of takeover targets, including Insurance Australia Group (IAG) and Suncorp, with the latter now the preferred option.
The report, which could not be independently verified, triggered an immediate market reaction. Shares of both Suncorp and IAG jumped nearly 4% following the news, according to LSEG data.
Tokio Marine, one of Japan's largest insurers, has been expanding internationally in recent years, seeking growth outside its mature domestic market. An acquisition of either Australian firm would mark a significant move into the country's competitive general insurance landscape.
Neither Tokio Marine nor the Australian insurers have commented publicly on the report. The Financial Times did not specify a timeline for any potential deal or the likely valuation of the targets.