Journalists are again stoking the fires of a much-rumoured union between QBE and IAG, with a major news agency the latest to raise the subject. In a report yesterday, Reuters quotes a number of analysts who believe the time is right for a $10 billion QBE takeover.

IAG's share price has struggled throughout this year, falling 20% against a rising market. It has risen slightly over the past week and was $4.96 at the close of trade yesterday.

QBE has steamrolled ahead and CEO Frank O'Halloran has stated he is always on the lookout for acquisitions - but only at the right price. QBE's share price has more than doubled in the past two years and analysts say there are more good things to come.

With well-known personal lines brands like NRMA in the IAG portfolio, market experts say there is untapped value in complementing QBE's own commercial strength.

They say the key deciding factor is likely to be price - and permission from Australia's competition regulator. Until those questions can be answered, the takeover is likely to remain in the rumour file.