Australian insurance provider QBE Insurance Group has confirmed that it has acquired a 14.9% stake in insurance broker Austbrokers Holdings. However, the company has stated that it does not intend to make a takeover offer.
Frank O’Halloran, QBE Group CEO, said The purchase will form part of our strategic holdings. It is long-term and friendly to the Austbrokers board. It is not our intention under existing circumstances to make a takeover offer.
The purchase price remains undisclosed.
Reuters reported a 2.8% increase in Austbrokers shares to A$5.50 following the announcement, but shares of QBE remained unchanged at A$30.15.
QBE has recently been on an acquisition spree, spending $2 billion purchasing US insurers Winterthur US Holdings and Praetorian in the last two months.