Insurance company QBE Insurance Group Limited (ASX:QBE)
has inked a deal to sell its Australian agency businesses to Steadfast Group Limited (ASX:SDF)
for an initial up-front cash consideration of $290 million.
The businesses include CHU Underwriting Agencies Pty Ltd, Corporate Underwriting Agencies Pty Ltd and Underwriting Agencies of Australia Pty Ltd.
CEO John Neal says the sale also includes a 10-year exclusive distribution deal QBE has entered into with Steadfast to retain the underwriting business provided by the agencies.
QBE advises the divestment forms part of its capital plan and the transaction is expected to be tied up by late next month.
QBE Insurance Group reported a net profit of $420.38 million in the first half of the 2014 financial year.