QBE acquires European reinsurance business
QBE has announced that it has signed a share purchase agreement to acquire Secura NV, a Belgian-based specialist reinsurer, with the acquisition still being subject to regulatory approval.
The purchase price, which is funded from internal resources, is €267 million and will be increased or decreased by the amount of the movement in the net tangible assets from 1 January 2010 to completion, scheduled for 31 August.
Investment assets included in the balance sheet amount to approximately €900 million.
After completion, Secura will form part of the QBE’s European operations reinsurance division, headquartered in London.
“We have known Secura for many years. They have a unique client base, a long track record of profitability and an excellent team of experienced insurance professionals,” said Frank O’Halloran, QBE’s group chief executive officer.
“There is little duplication with our existing reinsurance business,” he added.
Secura has established relationships with a large number of insurers throughout mainland Europe covering property, motor, casualty and specialist classes.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
