IAG has applied to the Reserve Bank of New Zealand to unite its AMI Insurance and Lumley General Insurance (NZ) businesses under IAG New Zealand.

It would mean IAG has only one licence with the regulator, cutting compliance costs.

The AMI and Lumley brands will be retained.

IAG New Zealand also owns NZI and State Insurance. It bought Christchurch-based AMI in 2012 and Lumley last year under its acquisition of Wesfarmers’ underwriting businesses.

It says the application is part of an internal reorganisation.

Approval could be granted later this year.