QBE has announced this morning that it is to acquire RenaissanceRe’s US book of business, including its property and casualty business underwritten through managing general agents, its crop insurance business underwritten through Agro National and its commercial property insurance operation. Consideration for this transaction is year-end 2010 GAAP book value, currently estimated to be approximately US$275 million.
Commenting on the announcement, Neill Currie, CEO of RenaissanceRe Holdings, said: “We are pleased to enter into this transaction with QBE to sell our US insurance business. We believe the time is right for us to exit in light of the relatively small scale of our US -based insurance operations in an environment that currently favors consolidation in certain US insurance lines.”
“We will continue to participate in the US excess and surplus lines insurance market through our Lloyd’s platform and Glencoe Insurance Ltd., our Bermuda-domiciled insurer. As always, we are committed to disciplined underwriting and to managing our portfolio of businesses to generate superior returns over time,” he added.
The transaction is expected to close in the first half of 2011, and is subject to regulatory approvals and customary closing conditions.
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