IAG says it is on track to achieve expected synergies and cost savings from its $1.86 billion acquisition of CGU and NZI. CFO George Venardos said last week that the group is confident it will out-perform its expected premium income and claims ratio as a result of the acquisition.

The group has put in place the last funding for the purchase of CGU and NZI, announcing a $200 million reset preference share offer. The hybrid equity issue will be used to repay senior debt which funded the acquisition. The retail offer opens tomorrow and closes on June 19. IAG will offer up to 2 million units.