QBE North America Sells Farmers Union Insurance to National General Insurance
Deal Includes Farmers Union Insurance Personal Insurance, Farm Owners, and Telecommunications Insurance Program
NEW YORK, Nov. 13, 2018 /PRNewswire/ -- QBE North America, an integrated specialist insurer, and National General Holdings Corp. (NASDAQ:NGHC) today announced that they have entered into an agreement through which National General will acquire QBE's Farmers Union Insurance business. The agreement will be effective in the first half of 2019, subject to customary closing conditions and regulatory approval.
Farmers Union Insurance consists of the personal insurance and farm owner business, as well as the Telecommunications Insurance Program (TIP). The agreement enables QBE North America to focus on the businesses where it excels and can offer distinctive value to the market, including its specialty, core commercial, programs, crop, Westwood and reinsurance businesses. It also provides National General an opportunity to further its position in the personal insurance market and expand its distribution network.
"Being an Integrated Specialist Insurer means offering exceptional value to the market in the areas where we have deep expertise and capabilities. We thoughtfully chose to move this area of the business to National General for its ability to consistently deliver an experience of excellence to our agents and customers," said Russ Johnston, Chief Executive Officer of QBE North America. "By intensifying our focus, we hope to improve our future earnings profile and enhance our ability to deliver our core capabilities to our limited and preferred distribution network."
"I am extremely excited about the acquisition of Farmers Union Insurance. This niche business fits well with our existing book and will further diversify both our geographic reach and distribution networks," said National General Chief Executive Officer Barry Karfunkel. "We appreciate the long-standing business that QBE has created in this market, positioning National General to take the business to the next level through our leading capabilities and platform. We look forward to welcoming the talented Farmers Union Insurance team to National General."
Deutsche Bank Securities Inc. acted as exclusive financial advisor and Locke Lord LLP acted as legal counsel to QBE.
About QBE North America
QBE North America, an integrated specialist insurer, is part of QBE Insurance Group Limited, one of the largest insurers and reinsurers worldwide. QBE NA reported Gross Written Premiums in 2017 of $4.6 billion. QBE Insurance Group's 2017 results can be found at www.qbe.com. Headquartered in Sydney, Australia, QBE operates out of 31 countries around the globe, with a presence in every key insurance market. The North America division, headquartered in New York, conducts business through its property and casualty insurance subsidiaries. The actual terms and coverage for all lines of business are subject to the language of the policies as issued. QBE insurance companies are rated "A" (Excellent) by A.M. Best and "A+" by Standard & Poor's. Additional information can be found at www.qbe.com/us, or follow QBE North America on Twitter.
About National General Holdings Corp.
National General Holdings Corp., headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- (excellent) from A.M. Best, and provides personal and small business automobile, homeowners, umbrella, recreational vehicle, motorcycle, supplemental health, and other niche insurance products.
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