QBE Insurance Group Limited (ASX:QBE) has inked a deal to divest its North America’s US agency businesses for $US300 million.
The insurance company plans to sell the businesses, including Community Association Underwriters, Deep South and SIU, to Alliant Insurance Services Inc.
Alliant Insurance Services will make an up-front cash payment of $US217 million to QBE and pay the remainder of the funds through an earn-out agreement over the next five years.
QBE says the sale is expected to close early February and an important element of the deal is a long term agreement to retain the underwriting business provided by the agencies.
QBE Insurance Group reported a net profit of $420.38 million in the first half of the 2014 financial year.
