QBE North America has agreed to sell its Farmers Union Insurance business to National General Insurance.
Image: QBE North America to sell Farmers Union Insurance to National General Insurance. Photo: Courtesy of adamr/FreeDigitalPhotos.net
The agreement will be effective in the first half of next year, subject to customary closing conditions and regulatory approval.
Farmers Union Insurance consists of the personal insurance and farm owner business, as well as the Telecommunications Insurance Program (TIP). The agreement enables QBE North America to focus on the businesses where it excels and can offer distinctive value to the market, including its specialty, core commercial, programs, crop, Westwood and reinsurance businesses. It also provides National General an opportunity to further its position in the personal insurance market and expand its distribution network.
QBE North America CEO Russ Johnston said: “Being an Integrated Specialist Insurer means offering exceptional value to the market in the areas where we have deep expertise and capabilities. We thoughtfully chose to move this area of the business to National General for its ability to consistently deliver an experience of excellence to our agents and customers.
“By intensifying our focus, we hope to improve our future earnings profile and enhance our ability to deliver our core capabilities to our limited and preferred distribution network.”
National General CEO Barry Karfunkel said: “I am extremely excited about the acquisition of Farmers Union Insurance. This niche business fits well with our existing book and will further diversify both our geographic reach and distribution networks.
“We appreciate the long-standing business that QBE has created in this market, positioning National General to take the business to the next level through our leading capabilities and platform. We look forward to welcoming the talented Farmers Union Insurance team to National General.”
Source: Company Press Release