As the impact of the global downturn began to deeply impact the global industry – even the most powerful reinsurer of all, Munich Re, had its AAA rating downgraded in December – foreign insurers operating in Australia began to look to their old colonial properties for some cash.

IAG made a backdoor move to take over the Australian and NZ assets of Aviva, and the privately owned Lumley Group was put on the market. Royal & SunAlliance in Australia and NZ, after failing to sell its life operations, finally came up lucky when its beleaguered parent decided it was worth more intact than in pieces. It put most of its Asia-Pacific assets in one basket and announced it would float the lot next year. It’s a positive move for the local industry, in that it maintains the presence of a major regional player.