Three sources familiar with the matter were quoted by Bloomberg as saying that IAG is discussing with Perth-based Wesfarmers, about a possible acqusition of its insurance business.
The unit, which has been put up for sale, focuses mainly on the commercial insurance business, and is expected to provide more than A$2bn ($1.8bn), for WES.
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During the fiscal 2012, the Wesfarmers insurance business, which manages has more than 200,000 policies, generated A$205m of earnings before interest and taxes.
