QBE Insurance Group Ltd - proposed acquisition of Elders Insurance Ltd

QBE Insurance Group Ltd

Elders Insurance Limited

QBE has announced that it has agreed to acquire 100% of Elders Insurance Ltd, 75% of Elders' insurance agency businesses (which will be run as a joint venture between the parties) and subscribe to 12% of Elders Ltd shares.

The ACCC considered the proposed acquisition in the context of the following markets:

- the national market for the manufacture of commercial insurance lines in Australia;
- state and territory markets for the manufacture and supply of motor vehicle insurance; and
- the national market for the manufacture and supply of home insurance and other types of domestic insurance excluding motor vehicle.

For the purposes of the competition analysis, the ACCC did not consider it necessary to form a definitive view regarding market definition.

The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In forming this view, the ACCC also considered the effect of the acquisition on customers of rural insurance products and concluded overall that the proposed acquisition was unlikely to significantly alter the competitive constraints faced by QBE, as QBE would continue to face competition from a number of large insurance providers in each of the relevant markets.