Thursday, November 18, 2010
QBE Insurance Group today announced that it has agreed to acquire the US insurance operations of Renaissance Re, which include a US crop and small specialist program insurance business. The acquisition is subject to regulatory approvals, with completion expected in March 2011.
The purchase price is expected to be around US$275 million, with net tangible assets acquired of approximately US$215 million. The acquisition will be funded from existing resources.
The business acquired is expected to generate over US$350 million of gross written premium in 2011 and net profit after tax of over US$30 million.
Mr Frank O'Halloran, QBE's Chief Executive Officer, said "The acquisition is in line with our strategy of acquiring specialist businesses to further enhance our product diversification and distribution. The acquisition is complementary to the NAU crop insurance business announced in June this year. The acquisition is expected to be earnings per share accretive in year one, subject to the usual caveats."
For further information, please contact:
Tel: +612 9375 4636
QBE Insurance Group Limited
ABN 28 008 485 014
82 Pitt Street
SYDNEY NSW 2000
Tel: +612 9415 4528
QBE Insurance Group Limited is listed on the Australian Securities Exchange, is recognised as one of the top 25 global insurance and reinsurance companies as measured by net earned premium and has operations in 49 countries.