Australia-based QBE Insurance Group has signed a share purchase agreement to acquire Belgian reinsurer Secura. The acquisition is subject to regulatory approvals.
Gross written premium of Secura in 2010 is expected to be around EUR200m. Secura covers property, motor, casualty and specialist classes of insurance.
According to QBE, the purchase price is EUr267m reflecting minimum net tangible assets of EUR205m using Belgian generally accepted accounting principles.
The purchase price will be increased or decreased by the amount of the movement in the net tangible assets from January 1, 2010 to completion. Investment assets included in the balance sheet amount to approximately EUR900m.
Completion is scheduled for August 31, 2010. Following the completion of the acquisition, Secura will be a part of QBE’s European operations reinsurance division, headquartered in London.
Frank Halloran, CEO of QBE group, said: We have known Secura for many years. They have a long track record of profitability and an excellent team of experienced insurance professionals. There is little duplication with our existing reinsurance business.
The acquisition meets QBE’s objective of earnings per share accretion in the first year.