Hollard Australia Group has dismissed suggestions its life insurance business will be floated.

A spokesman for Greenstone – the holding company for Hollard Financial Services – told insuranceNEWS.com.au it is “pure speculation”.

The business includes Guardian Insurance, Hollard Administration Services and comparison site Choosi.

Any decision to float would appear at odds with current market volatility and bad news about the sector.

Fitch Ratings Insurance and International Public Finance Director John Birch says selling to an overseas insurer would probably be a better option.

“The Japanese life insurance sector is looking for key acquisitions,” he told insuranceNEWS.com.au. “With a float, it is all about timing and currently volatility in the [Australian] market is high.”

Mr Birch cites the example of Genworth, which sought a float on the Australian Securities Exchange for a number of years.

“Genworth tried to get a float away and couldn’t, but then it did find a window and it was successful. It is all about timing.”

Recent writedowns by life insurers and reinsurers may prompt questions from investors, although most life companies remain profitable.

But low interest rates are affecting investment earnings and there is little sign of improvement in fixed-income returns – the favoured insurance company asset class.

“While there have been some improvements [in fixed income], any float would be in the weakest part of the current cycle,” Mr Birch said. “And while the life earnings cycle is stable, investment returns are still affected by low interest rate returns.”