Wesfarmers says Lumley’s insurance operation is being “ring-fenced” to ensure the $22 billion purchase of retailer Coles doesn’t impact on its rating.

The Perth-based conglomerate says it is aware of the importance of Lumley’s A-minus financial strength rating.

“Ring-fencing” would allow Lumley to be rated independently and maintain its credit rating.

CEO David Matcham says Lumley maintains a strong capital base and is committed to increasing its insurance business with the broker community. “It’s very pleasing that Wesfarmers has reaffirmed its support for the business by taking these positive steps.”