Shares of Insurance Australia Group (IAG) advanced about 5% to A$7.945 on Monday after the Financial Times reported that Japan’s Tokio Marine was evaluating a multi-billion-dollar acquisition of the insurer.
The ASX 200 index gained 0.6% as investors reacted to the potential deal, which follows Tokio Marine’s strategic move in March to acquire a stake in Berkshire Hathaway’s Japanese unit. The Berkshire deal included provisions for cooperation in large-scale international mergers, according to the report.
Tokio Marine has previously been linked to Suncorp as a more likely target, though the Financial Times noted that an offer for IAG could still materialize. The report did not specify whether Tokio Marine had made a formal approach or disclosed any preliminary terms.
The surge in IAG shares reflects investor optimism that a potential acquisition could unlock value, though no concrete details on valuation or deal structure have been confirmed. Tokio Marine, one of Japan’s largest insurers, has not publicly commented on the speculation.
