The previously announced purchase of Wisconsin-based insurer General Casualty, its U.S. holding company, and sister company Unigard Insurance Group (Bellevue, Wash.) by Australia-based QBE Insurance Group was completed late yesterday.
QBE, based in Australia, announced completion of the $1.16 billion transaction with Paris-based AXA Group after all regulatory approvals were secured. The acquisition, originally announced in January, involves the U.S. affiliates formerly owned by the Swiss-based Winterthur Insurance Group, which AXA purchased last year.
In a separate transaction also completed yesterday, QBE acquired the Praetorian Financial Group, a specialty insurer in New York.
“Our management team, our employees and our agents are excited about joining the QBE family,” said John Pollock, President and CEO of the newly named, Sun Prairie-based QBE Regional Insurance (formerly Winterthur U.S. Holdings, Inc.), a division of QBE the Americas. “Our foundation of 1,800 community-based independent agencies, 33-state reach and business infrastructure helps QBE expand into the super-regional property and casualty market.”
These acquisitions complete QBE’s focused diversification strategy of creating four pillars within QBE the Americas: Specialty Insurance, Regional Insurance, Reinsurance and Latin America. As a result of yesterday’s purchases, combined, QBE the Americas is now one of the Top 20 Property & Casualty insurers in the U.S., with over $4.6 billion in annual gross written premiums and an estimated combined policy holders’ surplus of $2.0 billion. The division now makes up almost 40 percent of QBE Group’s worldwide gross premium income.
“We are delighted to have achieved a timely and successful closing of the Winterthur U.S. Holdings and Praetorian acquisitions,” said Tim Kenny, President and CEO of QBE the Americas. “General Casualty and Unigard and their strong independent agency base greatly expand our share of the mainstream property and casualty market in the U.S. The operation’s infrastructure will also provide significant processing and technology benefits for us.”
The U.S. operations, now part of QBE the Americas, will form the core of the QBE Regional Insurance division. General Casualty and Unigard will continue to operate under their well-established brand names. The companies will adopt QBE’s logo and corporate color. Agents and policyholders can expect a seamless transition, and the companies do not anticipate any leadership or staff changes as a result of the acquisition.
About QBE the Americas
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. For more information visit www.qbe.com.
About General Casualty
General Casualty Insurance Companies, headquartered in Sun Prairie, Wis., has insured autos, homes and businesses since 1925. General Casualty markets its products through 1,500 independent insurance agencies in 25 states and employs 1,800 people in 15 offices. It reported direct written premiums of $1.15 billion in 2006. General Casualty is part of QBE Regional Insurance. For more information visit www.generalcasualty.com.
About Unigard
Unigard Insurance Group is a multi-line, property and casualty insurer established in 1901. It operates local branch offices in eight western states and markets its products through 300 independent insurance agencies. It reported direct written premiums of $306 million in 2006. Unigard, based in Bellevue, Wash., is part of QBE Regional Insurance. For more information visit www.unigard.com.
For more information contact Anne M. Smith or Tom French.