Wesfarmers' Insurance Division

c. Insurance

Wesfarmers' insurance division comprises of general insurance and other services. The insurance operations include Wesfarmers Federation Insurance and Lumley General Insurance Australia and New Zealand. Negative growth of 3.6% in the last year, has been due to intense competition in the industry and reduced margins^. This indicates that the business has gone from being a ‘cash cow' to a ‘problem child' for Wesfarmers. The GI industry in Australia includes many established players, such as QBE Insurance and Allianz Australia. Revenues in the industry were close to $22.4 billion in 2007 and grew at 4.4% from the previous period (APRA, 2010).

d. Industrial and Safety

The Industrial & Safety division represents Australia's market leaders in the supply of maintenance, repair and safety products*. Revenues grew by 18.3% from the previous period, key relationships with suppliers had been negotiated and a sourcing unit set up in China^. The business is positioned as a benefit leader through a value proposition of efficient delivery and expert technical advice^. The manufacturing industry in Australia grew marginally by 1.95%, after 2 years of decline (World Development Indicators, 2010), highlighting that the market for Industrial