NEW YORK -- QBE on May 1 announced that it has completed its previously announced acquisition of North Pointe Holdings Corporation, a Southfield, Michigan based property and casualty insurance group.
This acquisition represents another significant event for QBE and will further expand the company's market presence in the United States. QBE the Americas is one of the top 20 property & casualty insurers in the United States, with 2008 gross written premium estimated at US$4.2 billion.
"We are pleased to have achieved a successful and timely closing of the acquisition," said Tim Kenny, president and CEO of QBE the Americas. "QBE's strategy of focused diversification and North Pointe's book of business is complementary to our Specialty Insurance division and further increases our U.S. distribution through its agency network."
QBE U.S. Holdings paid US$16.00 per share, for a total purchase price of US$146 million for North Pointe Holdings Corporation. The acquisition was funded through existing excess capital held in the United States holding entity.
QBE also confirms the gross written premium income projection of around US$150 million in the first full year from this acquisition. Frank O'Halloran, QBE Group CEO, said "North Pointe will be earnings per share accretive in year one. This is before estimated per annum synergies of US$15 million after tax from 2009."
With a focus on owner-operated businesses, the company is the nation's largest insurer of independent bowling centers and largest writer of liquor liability insurance in Michigan.
The North Pointe transaction was originally announced on January 3, 2008.
QBE the Americas is a division of Australia's QBE Insurance Group Ltd, one of the top 25 insurers and reinsurers worldwide. The Americas division, headquartered in New York, is a leading North and South American insurer and reinsurer. The division conducts business through various property and casualty insurance subsidiaries in eight countries.