CGNU Sells New Zealand Business To NRMA For $178 Million

February 8, 2001

NRMA, Australia’s largest general insurer, has agreed to acquire New Zealand’s State Insurance Ltd from CGNU, its present owner, for A$325 million ($178.23 million). CGNU chose to sell the former Norwich Union subsidiary rather than integrate its operations with its commercial insurance unit, New Zealand Insurance.

Analysts approved the move as strategically sound for NRMA, which will acquire a staff of 1400 employees, State’s 1.5 million policies and 700,000 customers. The move also gives the Sydney-based insurer increased geographic diversity with roughly 42 percent of its written premium now derived from outside of New South Wales.

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