Suncorp Bank sale could pave way for Zurich tilt: report

19 September 2022

Suncorp’s sale of its banking business could pave the way for the company to take a look at the Zurich Australian general insurance operations if they come onto the market, a media report says.

A German insurance publication reported in February that Zurich’s global CEO Mario Greco has made it clear the company will keep its Australian general insurance business.

But previously companies including Suncorp were speculated about as possible bidders in an expected sale of the assets, excluding the travel insurance business.

The Australian reported last week that there’s a view that it’s inevitable Zurich will put the business back up for sale, although it’s unknown whether that would include travel. Whether Suncorp would be a keen buyer, also remains to be seen, although it would be well positioned after the bank sale and experts believe it would make strategic sense, the article says.

Suncorp said in July that the $4.9 billion sale of the bank is expected to be completed in the second half of next calendar year, subject to regulatory approvals, including from the Australian Competition and Consumer Commission.

ANZ has indicated that it is confident approval for the deal will be given.

“While we still have an approval process to navigate, we believe, as the smallest of the major banks, this acquisition will help ANZ compete more effectively in Queensland and ultimately provide better outcomes for customers across Australia,” it said in a retail share offer booklet.