IAG hopeful of India, China deal in 12 months

By Denny Thomas

SYDNEY (Reuters) - Insurance Australia Group Ltd (IAG.AX: Quote, Profile, Research, Stock Buzz), Australia's top car and home insurer, expects to announce an insurance deal in either India or China in the next 12 months, Chief Executive Office Michael Hawker, said on Friday.

"We are hopeful of trying to do something in next 12 months," Hawker, a former international rugby player, told Reuters when asked if IAG could announce a deal in either of the two countries before the end of 2007.

"Whether we do both I don't know, we would certainly like to do something in one of them (country)," Hawker added.

IAG is fast expanding into overseas markets to beat sluggish growth in Australia. But earlier this year disagreement over the size of a stake in China Pacific Insurance Co Ltd. saw IAG ditch plans for 24.9 percent of the firm for up to A$375 million.

Earlier on Friday, IAG reported a 27 percent drop in annual profit due to storm losses but flagged up to 12 percent revenue growth this year.

Shares in IAG, with a market value of A$9.5 billion, fell 7.3 percent on Friday to A$5.30 and logged their biggest one-day percentage loss in about five years.

Hawker declined to comment on media reports in India which earlier this month said IAG was among the companies short-listed by Housing Development Finance Corp (HDFC.BO: Quote, Profile, Research, Stock Buzz) to buy a stake in its insurance venture.

"We don't make comments about acquisitions or joint ventures. But we are still very interested in India. We would like to have a joint venture structure in India," he added. HDFC bought its partner Chubb Corp's (CB.N: Quote, Profile, Research, Stock Buzz) 26 percent stake in the general insurance venture earlier this year after an uneasy relationship stalled growth.