The sale of IAG shares by NRMA raises questions about a possible split between the two companies, according to the Sydney Morning Herald (SMH).
SMH reported: 'The boards of Insurance Australia Group and New South Wales motoring body NRMA last night held a joint meeting to discuss their future relationship after NRMA breached a key business agreement by dumping more than $45 million worth of IAG shares – almost half its holding in the insurer.
BusinessDay can also reveal that the NRMA board has explored the formal separation of the two bodies. The NRMA, which has 2.3 million members, provides the bulk of IAG's general insurance customers throughout NSW and the ACT. Any attempt to dissolve the long-term business agreement between the two could result in a dispute over ownership of the NRMA's historic logo. IAG was spun out of the NSW motoring group a decade ago, a move strongly resisted by some NRMA directors. Since then, it has grown to become the nation's biggest general insurer.' See the full story at
www.smh.com.au/business/nrma-iag-car-crash-20110628-1gpak.htmlla.cobla