Insurance Australia Group Ltd. advanced 5.0% to A$7.945 on Tuesday after a report cited Tokio Marine’s consideration of a major acquisition, with IAG among the leading targets alongside Australian peer Suncorp and Canada’s Intact Financial.
The rally followed a Financial Times report indicating Tokio Marine, a Japanese insurance giant, was evaluating a multi-billion-dollar takeover in Australia. While Suncorp was described as the most likely target, an offer for IAG could still materialize, according to the report. Tokio Marine has not confirmed any formal approach or discussed deal terms.
Sentiment in Australian insurance stocks was further supported by strong earnings from broker AUB Group Ltd. The ASX 200 index rose 0.6%, reflecting broader market gains.
Tokio Marine’s interest in Australian targets follows Berkshire Hathaway’s A$1.2 billion stake in the Japanese insurer in March, with terms including cooperation on large-scale international mergers. The Financial Times did not specify whether Tokio Marine had engaged in preliminary discussions with IAG or other potential targets.
