The Warranty Group is to acquire IAG’s retail warranty business – formerly Lumley Retail Warranty – making it one of the biggest retail warranty insurers in Australia.

It comes just two weeks after global risk management provider Assurant announced it is buying The Warranty Group for $US2.5 billion ($3.2 billion).

The Warranty Group’s Executive VP for Asia-Pacific, Manfred Schmoelz, says the acquisition “cements our position as a key player in Asia-Pacific’s retail sector. It’s a testament to the economic growth and stability of the Australian market that we are investing strongly to grow our core business in the country.”

He says the Warranty Group will expand its network of vendors and partners to incorporate IAG’s retail warranty business. The acquisition is part of a strategy to grow in the region and strengthen its data analytics capabilities.