Suncorp Metway considers GIO's IT implications

Bancassurance group Suncorp Metway said it will approach new acquisition GIO's IT operations with "an open mind".

Suncorp Metway recently put forward a proposal to acquire insurance company GIO from AMP for $1.24 billion, making it the equal second, largest general insurance company in Australia. However, concerns have been raised by the Federal Government that the group has the financial muscle to digest the purchase.

Under the terms of the agreement, operational control of GIO will transfer on October 1 2001.

Carmel Gray, group general manager IT for Suncorp Metway, said: "Between now and then we will be working closely with AMP and those IT staff who will join Suncorp Metway to gain a greater insight into the operations of the GIO business and how IT supports that business."

Gray said the company will be making decisions that are in the "best interests" of the merged organisation going forward. She said she was unable to make any further comment at this time.

Currently, GIO's IT infrastructure is outsourced to CSC under an agreement made with then owners, AMP.

The $550 million, five-year contract came into effect on June 1 last year.

The deal covers all IT infrastructure including network, desktop and mainframe services and selected mid-range services.

CSC officials told Computerworld they were unable to comment at this stage on what possible impact the Suncorp Metway deal may have on its outsourcing agreement with GIO.

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