Zurich Financial Services Australia has fiercely denied rumours it is up for sale, saying it’s one of the Swiss insurer’s best performing businesses outside the US and UK.

Zurich spokesman Rob White told Sunrise Exchange News media reports that the group may be sold to Suncorp are “totally unfounded”, and analysts’ speculation as well as the regulatory probes into the group’s previous accounting problems have “added fuel to the fire”.

Mr White also says industry rumours that IAG is in talks with the Australian Securities and Investments Commission (ASIC) about buying Zurich are untrue. IAG spokesman Jennifer Laurence took the well-worn route by telling Sunrise Exchange News the insurer “won’t comment on industry speculation”. But it’s a bit more serious than that, with some brokers allegedly being told by CGU sources that the sale of Zurich to IAG is a done deal. Hence the tough Zurich response.

He says a recent trip to Switzerland by Zurich CEO Tom Brown for a group leadership conference was purely a management exercise – not an opportunity to discuss plans to sell off the business.

The most recent rumours started circulating about the future of Zurich’s Australian operations after a Zurich senior executive in the UK allegedly described the group’s Australian operations as “hard work”.

Then at a shareholders and investment briefing last week Suncorp Executive Director and CEO John Mulcahy responded to a question about the Zurich speculation by saying it would be a “good fit” for Suncorp.

But Zurich has hit back at Mr Mulcahy, telling him Zurich’s not for sale.

In strongly worded letter obtained by Sunrise Exchange News, Mr Brown told Mr Mulcahy he is “perplexed” over his comments regarding a possible purchase of Zurich.

“I can state quite emphatically that Zurich has no plans to sell its Australian business and certainly, as you are aware, we have not had any discussions with Suncorp on the matter,” the letter says.

“I suppose we… should feel flattered that people acknowledge our business is so successful that we are seen as such a worthwhile target! However, we would prefer not to have all this attention.”

Mr White says Mr Brown took away the clear message from the Switzerland meeting that “Zurich Australia is an important business unit and a key component of the group’s international business strategy”.