WELLINGTON - The merger of two of Britain's largest insurers will send their New Zealand subsidiaries scurrying to the Commerce Commission to seek local clearance for the deal.
State Insurance and New Zealand Insurance will become part of the same group if their parents, Norwich Union and CGU go ahead with their proposed merger.
Combined, the two NZ entities have just under 40 per cent of the $1.8 billion general insurance market in New Zealand with a combined premium income of about $700 million.
State's premium income had been just ahead of NZI's for the past five years.
The country's biggest domestic general insurer, about 80 per cent of its business was domestic - individual's homes, cars, contents and pleasure craft - and 20 per cent commercial insurance, said State Insurance chief executive Tim Sole.
State had just over 1300 staff and NZI about 800, he said.
Combined, Norwich Union and CGU would have 74,000 staff worldwide.
The parent companies yesterday said they expected about 5000 jobs worldwide would be lost out, with around 4000 British jobs going.
Asked if he expected the loss of a few hundred jobs in New Zealand, Mr Sole said he did not.
He said that State Insurance and NZI would be seeking Commerce Commission clearance but did not expect problems.
- NZPA
State, NZI say UK deal no problem
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