Rumours surrounding the future of Fortis in Australia continue to bubble in the market. Suggestions in yesterday’s Australian Financial Review that CGU is the front-runner for the company are being countered by suggestions that Royal & SunAlliance is leading a pack that also includes CGU, NRMA and QBE. Time will tell.

UBS Warburg is handling the sales deal, which is understood to have a price tag of around $300 million for the profitable niche operations, AIM, AMEV and VACC.

Although Fortis Australia CEO Vyn Tozer could neither confirm nor deny not the latest reports, his company has continued to return strong results for its Dutch parent. However, the local operation is understood to be a victim of the company’s new management taking a different global strategy. 

Internationally, the parent company has announced it wants to merge with another European insurer within the next three years. CEO Anton van Russum – who took over the poorly performing company last year with a vow to rationalise its strategies - was quoted in a Dutch newspaper last week as actively seeking a merger, and a spokesman later agreed the company is holding talks with potential partners.

Fortis was also in the European financial news last week over market rumours that ING and a significant French investor were selling down their Fortis stakes.