Standard & Poor’s (S&P) has affirmed IAG’s issuer credit rating at A and its subsidiaries’ financial strength and issuer credit ratings at AA. Their outlooks remain stable.

S&P analyst Caroline Strahan says the ratings reflect IAG’s strong business and financial risk profiles.

“We do not expect the group’s proposed $1.85 billion acquisition of the insurance underwriting businesses of Wesfarmers… to result in any immediate or medium-term ratings action.”

Regulators in Australia and New Zealand are due to rule on the proposed takeover this week.

S&P says IAG has strong brand differentiation, with well-established names such as NRMA and CGU in Australia and State Insurance and AMI in New Zealand.