QBE Insurance Group has entered into a definitive agreement to acquire the US insurance operations of Renaissance Re, which include a US crop and small specialist program insurance business, for approximately $275m.

QBE said that the purchase price is expected to be around $275m, with net tangible assets acquired of approximately $215m. The acquisition will be funded from existing resources.

The business acquired is expected to generate over $350m of gross written premium in 2011 and net profit after tax of over $30m, according to QBE.

RenaissanceRe CEO Neill Currie said the company will continue to participate in the US excess and surplus lines insurance market through its Lloyd’s platform and Glencoe Insurance, the company’s Bermuda-domiciled insurer.

The transaction is expected to close in the first half of 2011, and is subject to regulatory approvals and customary closing conditions.