Price for Commonwealth Bank insurance unit tipped to hit $1.2bn

Commonwealth Bank’s general insurance unit could fetch as much as $1.2bn. Picture: NCA NewsWire / Sarah Matray

Price expectations for CBA’s general insurance unit are rising, with some now expecting $1.2bn.

Earlier, $1bn was expected.

However, a result could be weeks away as the bank prioritises the sale of a 55 per cent interest in Colonial First State to Kohlberg Kravis Roberts for about $1.7bn and the merger of Aussie Home Loans with Lendi.

Insurance Australia Group, advised by Bank of America, and Suncorp, advised by UBS, are considered front runners.

Suncorp is particularly motivated to boost its market share in insurance.

But there are fears IAG and Suncorp may not gain clearance from the Australian Competition and Consumer Commission given their dominant market positions.

Meanwhile, DataRoom understands that QBE and Germany’s Allianz are through to the final stage of the competition, and some think they could succeed given that neither would face the same competition concerns.

Tokio Marine, advised by Macquarie Capital, is also thought to be in the final mix is

Goldman Sachs is working on the sales process for Westpac.