Meanwhile, IAG CEO Michael Hawker’s visit to QBE Australia’s Raymond Jones last month is still getting the Sydney Morning Herald excited, despite both companies saying the visit was to discuss ICA business, not a mega-merger.

But the SMH is sticking to its guns, publishing yet another article suggesting that the two top 5 insurers will join forces to create an insurance powerhouse.

The speculation began last month after the newspaper reported that Mr Hawker had been seen entering QBE’s Pitt Street offices. It then went on to quote someone “familiar with the proposal” saying the merged company would be headed by Mr Hawker, and QBE Insurance CEO Frank O’Halloran would become Chairman.

But IAG and QBE said Mr Hawker and Mr Jones were discussing industry issues, including the recent inquiry into smash repairers’ relationships with insurers.

The latest article says the merger would create an international insurer valued about $16 billion.

“A merger would create a dominant player in Australian general insurance and lay foundations for further offshore expansion,” it says. “Such a deal would face regulatory hurdles but highlights the fact that industry players are seeking growth opportunities.”

Well, yes, there’s no doubt of that. But the SMH either knows more than it’s telling – which is highly unlikely – or it’s having a lend of us. As QBE CFO Neil Drabsch told Sunrise Exchange News last month, the speculation was “nothing more than the press trying to come up with a bit of a story”.