QBE Insurance (Australia) Limited - proposed acquisition of Universal Underwriting Agencies Pty Limited

Acquirer(s)

  • QBE Insurance (Australia) Limited

Target(s)

  • Universal Underwriting Agencies Pty Limited

Summary

QBE Insurance proposes to acquire all the shares of Universal Underwiritng Agencies Pty Limited.

Market definition

The ACCC considered the proposed acquisition in the context of the national market for the distribution of commercial risk insurance to brokers and end-consumers. The various markets for the distribution of personal lines of insurance (including householders, accident and motor vehicle) were also considered.

Competition analysis

On 29 August 2007, the ACCC decided to not intervene in the proposed acquisition.

The ACCC considered that the proposed acquisition is unlikely to substantially lessen competition in the national market for the distribution of commercial risk insurance to brokers and end-consumers because the proposed acquisition is unlikely to result in significant consolidation within the relevant market. Further, there would remain numerous alternative underwriting agencies to which end-consumers and commercial insurance manufacturers could turn. In light of the above, the proposed acquisition is also considered unlikely to raise vertical integration concerns.

The ACCC considered that the proposed acquisition is unlikely to raise competition concerns in respect of the various markets for the distribution of personal lines of insurance (including householders, accident and motor vehicle) because the merger parties have limited presence in these markets.

Timeline

DateEvent
22/08/2007ACCC commences review under Merger Review Process Guidelines. Market inquiries commence.
28/08/2007Closing date for submissions from interested parties.
29/08/2007ACCC announced it would not oppose the proposed acquisition.