QBE sells Farmers Union business to National General
Specialist insurer QBE North America is selling its Farmers Union Insurance business to National General Holdings as part of its strategy to reinforce focus on its core offerings and improve future earnings profile.
Farmers Union Insurance consists of the personal insurance and farm owner business, as well as the Telecommunications Insurance Programme (TIP). The deal will be effective in the first half of 2019, subject to customary closing conditions and regulatory approval.
QBE said the agreement will enable it to focus on the businesses where it excels and can offer distinctive value to the market, including its specialty, core commercial, programmes, crop, Westwood and reinsurance businesses.
The deal 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," said Russ Johnston, chief executive officer of QBE North America. "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.
"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."
National General chief executive officer Barry Karfunkel, said: "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.
"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."
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