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Bank denies bid for insurer

The Commonwealth Bank of Australia (CBA) has rejected speculation it is considering buying an insurer.

In a statement to the Australian Stock Exchange on Friday, CBA Group Executive Wealth Management Grahame Petersen says the bank is following an organic growth strategy for its general insurance business.

“We do not currently believe that the purchase of a general insurance business would be in the long term interests of our shareholders and we have no plans to do so,” Mr Petersen said.

A Citigroup report last week sparked speculation the bank is looking at growing its insurance business by acquisition. Subsequent media reports linked the bank with a possible bid for IAG.