ZURICH INSURANCE IN "ADVANCE TALKS" ON WESFARMERS INSURANCE

Zurich Insurance is said have begun due diligence with a view to buying the insurance arm of Australia-based conglomerate Wesfarmers, according to the Australian Financial Review, citing unnamed sources. Zurich would have to pay about AUD2bn ($1.9bn) according to the report. Wesfarmers' insurance division reported a strong result for the year to June 30, with pre-tax earnings of AUD205m and an insurance margin of 9.8%.