Posted on 16 Apr 2010
QBE Insurance Group Ltd. said Friday it agreed to acquire NAU Country Insurance Co., a provider of crop insurance in the U.S., for $565 million.
"The acquisition is in line with QBE's long-term strategy of acquiring specialist businesses to further enhance our significant product diversification and distribution," QBE Chief Executive Frank O'Halloran said in a statement. "The purchase price relative to book value reflects the high quality of NAU's underwriting and management business and the fact that the substantial majority of the 2010 profits will be earned in the second half of the calendar year."
QBE said it is acquiring $217 million of net tangible assets and added NAU is the third largest writer and manager of multi-peril crop insurance in the U.S.