Calliden cleared for Australian Unity buy
Niche insurer Calliden has been cleared to buy the general insurance assets of Australian Unity by the Australian Prudential Regulation Authority (APRA).
Calliden announced early this month it would pay $62.5 million in scrip and cash for Australian Unity’s general insurance assets – including a share placement of about 15% of Calliden’s pre-deal issued capital to Australian Unity. The deal gives the Melbourne-based health and financial services mutual a 13% slice of Calliden.
The deal includes high-value homes specialist Mansions of Australia and Australian Unity’s 50% share in the local operations of NZ rural insurer Farmers Mutual Insurance. Australian Unity’s general insurance employees are invited to move to Calliden.
A week after the deal was announced, ratings agency Standard & Poor’s (S&P) placed Australian Unity’s general insurance BBB rating on creditwatch, reflecting uncertainty about the financial strength of Calliden, which is not rated.
S&P acknowledges that Calliden is listed on the Australian Stock Exchange, has a capital base of $78.6 million and a short operating history, having written new business only from May 2005.
Calliden announced early this month it would pay $62.5 million in scrip and cash for Australian Unity’s general insurance assets – including a share placement of about 15% of Calliden’s pre-deal issued capital to Australian Unity. The deal gives the Melbourne-based health and financial services mutual a 13% slice of Calliden.
The deal includes high-value homes specialist Mansions of Australia and Australian Unity’s 50% share in the local operations of NZ rural insurer Farmers Mutual Insurance. Australian Unity’s general insurance employees are invited to move to Calliden.
A week after the deal was announced, ratings agency Standard & Poor’s (S&P) placed Australian Unity’s general insurance BBB rating on creditwatch, reflecting uncertainty about the financial strength of Calliden, which is not rated.
S&P acknowledges that Calliden is listed on the Australian Stock Exchange, has a capital base of $78.6 million and a short operating history, having written new business only from May 2005.