The purchase allows QBE to capitalize on the challenges in the U.S. market, where credit crises and housing market woes are resulting in huge losses for mortgage insurers.
PMI Australia is a mortgage insurer for lenders that writes about 40% of the residential-mortgage-insurance market in Australia. Combined with PMI Asia, based in Hong Kong, the businesses are expected to write about A$212 million in gross premiums this year.
QBE plans to continue pursuing growth from acquisition opportunities in the Americas, Europe, Asia and Australia, purchases that QBE Chief Executive Frank O'Halloran says will increase per-share earnings in the first year and are in line with the insurer's strategy of diversification.