QBE Announces Acquisition of North Pointe
Australia-based QBE today announced that it had signed an agreement to acquire North Pointe Holdings Corporation, a NASDAQ listed US-based property and casualty insurer. The acquisition is subject to US regulatory and North Pointe shareholder approvals.
North Pointe writes approximately US$150 million of gross written premium in specialist markets involving owner-operated small and mid-sized restaurants, bars, taverns, small grocery and convenience stores, bowling centres, automobile repair facilities, artisan contractors, roller skating centers and forestry.
North Pointe sells its products through a network of over 1,900 independent and affiliated agents.
The purchase price is US$146 million, which is approximately 1.6 times estimated shareholders’ funds at 31 December, 2007.
The acquisition will be funded from existing excess capital held in the US.
Tim Kenny, President & Chief Executive Officer of QBE the Americas said “The acquisition of North Pointe is complementary to our recent US acquisitions and further increases our distribution through independent and affiliated agents.”
Frank O’Halloran, QBE Group Chief Executive Officer, added “The acquisition will meet QBE’s acquisition criteria including earnings per share accretion in year one. It will also enable us to achieve further synergies with our existing business. Subject to unforeseen circumstances, we anticipate a combined operating ratio in the low 90’s in 2009.”
About QBE
QBE Insurance Group is Australia's largest international general insurance & reinsurance group, and one of the top 25 insurers and reinsurers worldwide
Source: Source: QBE | Published on January 4, 2008
Are you a retail Agent Looking for a Quote?