Sharechat Logo

NRMA leaps Tasman with State buy

Friday 9th February 2001

Text too small?

Australia's largest general insurer has secured a beachhead in the New Zealand market, buying State Insurance from CGNU for $A325 million ($406 million).

State, which employs 1400 staff and has a 19% share of the general insurance market, made an $18.6 million profit in 1999 on total assets of $486 million.

The foray is the first for NRMA into New Zealand but managing director Eric Dodd said State was "a good strategic fit" with complementary people, products and culture.

The company planned to achieve cost savings of about $10 million a year by changing the distribution and claims network.

NRMA human resources general manager David Smith will replace Tim Sole as State's managing director.

Chairman Nicholas Whitlam said he expected the acquisition to be earnings positive within 18 months. It was "on the small side" for cash-rich NRMA, which was looking to make a medium-sized investment over the next year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

August 18th Morning Report
2025 Annual Shareholders' Meeting and Director Nominations
Meridian Energy monthly operating report for July 2025
August 15th Morning Report
VGL upgrades aspirations, accelerates to meet client demand
August 14th Morning Report
VHP - Focus on Fundamentals: Driving Operational Performance
August 13th Morning Report
Devon Funds Morning Note - 12 August 2025
Spark announces sale of 75% of data centre business