Australia-based QBE Insurance Group has signed an agreement with Alliant Insurance Services to sell its US agency businesses, for around $300m.
The transaction includes an up-front cash payment of about $217m, while the remaining cash will be paid over the next five years through performance-based earn-out agreement.
As part of the deal, Alliant will acquire QBE North America’s US agency businesses, including Community Association Underwriters (CAU), Deep South Insurance Services (DSIS) and Southern Insurance Underwriters (SIU).
QBE Group CEO John Neal said: "We are pleased to announce the progression of another important step of our capital plan in the sale of the US agency businesses at a price we consider to be attractive for our shareholders.
"An important element of the sale is the long-term agreement that we have entered into to retain the underwriting business provided by the agencies. We look forward to continuing to grow our program business and to working with Alliant and CAU, Deep South and SIU."
According to QBE, the deal is expected to be completed in early February of this year.
With around 16000 employees in 52 countries, QBE provides insurance services in Australia, America, Europe and Asia Pacific region.
Image: QBE to sell US agency businesses to Alliant. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.