QBE Insurance Group Ltd
(ASX:QBE) has revealed it will pay $US700 million up front for Bank of America’s Balboa division.
The move increases the company’s American operations, the long term distribution agreement with the bank adding $US1.3 billion of annualised net earned premium.
QBE had entered a trading halt earlier this week in anticipation of the announcement.
The insurer said 2010 fiscal year results will be in line with market expectations despite flooding and Cyclone Yasi denting profits by at least $US200 million.
In the six months to 30 June 2010, QBE Insurance Group reported a net profit of $523 million.
