Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Insurance Australia Group Ltd (IAG) Is Cashing Out Of Its Thai Business

Insurance Australia Group Ltd (ASX: IAG) announced on Tuesday that it will sell its Thai, Indonesian and Vietnamese businesses and net a profit of at least $200 million.

Insurance Australia Group or IAG is one of Australia’s leading insurance companies (and one of a few Aussie companies to have Warren Buffett as an investor).

IAG will sell its 98.6% holding in Thailand’s Safety Insurance and its 80% stake in PT Asuransi Parolamas in Indonesia to Tokio Marine & Nichido Fire Insurance Co., Ltd., part of Tokio Marine Holdings Inc., for around $525 million.

“We are pleased to accept the offer for our businesses in Thailand and Indonesia from Tokio Marine,” IAG’s CEO Peter Harmer said.

In a separate deal, IAG will sell its 73.07% stake in AAA Assurance Corporation.

Combined, the two transactions are expected to net IAG an after-tax profit of $200 million or more in FY19.

IAG said the sale will have a negligible impact on gross written premium (GWP) growth for FY18 but will improve its insurance margin by about 0.50%. Its capital buffer, or CET1 ratio, will increase by at least 0.13%.

Warren Buffet struck a deal with IAG in 2015. Did you know Buffett was a millionaire in his late 20’s but ‘only’ worth $300m at his 50th birthday? Now he is a $US84 billion investor. That means he made 99% of his wealth after turning 50! How does a 50-year-old do that? Download the free Aussie investing ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“ when you join the free Rask Group Investor Club Newsletter. You’ll get insights into the 4 steps Buffett uses to pick his investments.

Click here to join The Rask Group’s Investor Club Newsletter and Download The Ebook!

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content