Fortis Sells Australian Unit to CGNU

The Belgo-Dutch financial services group Fortis announced the sale of its Australian property insurance unit to the U.K.’s CGNU for € 205 million ($379 million) in cash.

Fortis indicated that, while profitable, Fortis Australia Ltd.’s market share was too small, and it no longer fit with the company’s strategy of concentrating its efforts in Europe, and on several niche markets in the U.S.

CGNU, already among the top five general insurers in Australia, will further strengthen its position with the acquisition, and expects to achieve significant cost savings of around A$23 million ($ 11.9 million).