QBE Insurance Group Ltd
(ASX:QBE) has agreed to acquire US NAU Country Insurance Company for US$565 million.
The insurer says the acquisition of the Multi-Peril Crop Insurance business, will be funded from existing resources and will be earnings per share accretive in the first year.
QBE says net tangible assets acquired will be US$217 million.
Multi-Peril Crop Insurance is a US government sponsored program provided to help farmers insure their crops.
QBE says NAU is the third largest writer and manager of Multi-Peril Crop Insurance in the US.
In 2009 NAU wrote US$976 million of gross earned premium, while net earned premium was US$354 million.
CEO Frank O’Halloran says the acquisition is in line with the company’s long term strategy of acquiring specialist businesses to further enhance its significant product diversification and distribution.
For 2009 QBE reported profit of $1.97 billion.
