Wisconsin-based insurer General Casualty, its U.S. holding company and sister company Unigard Insurance Group in Bellevue, Wash., are being acquired by Australia-based QBE Insurance Group in an agreement with current parent companies Winterthur Insurance Group in Switzerland and Paris-based AXA Group. The purchase price for the companies is $1.16 billion.
General Casualty, Unigard and the U.S. holding company have been under strategic review since summer, when AXA agreed to buy the Winterthur Insurance Group from banking giant Credit Suisse. The U.S. operations were evaluated for a potential sale due to AXA’s disinterest in a U.S. property/casualty presence. Sun Prairie-based management have been heavily involved in the search for a suitable buyer.
“We are extremely excited about the opportunities this new alliance will bring,” said John Pollock, president and CEO of Sun Prairie-based Winterthur U.S. Holdings, Inc. “QBE management respects our independent agent-based business model and feels we are an excellent strategic fit. Our $1.5 billion annual gross premium revenue and 33-state reach will significantly expand their business and geographic presence in the U.S. market.”
This acquisition completes QBE’s strategy of building four major business streams in the Americas: specialist insurance programs, property and casualty insurance in regional markets, reinsurance and a Latin American presence.
“The acquisition of Winterthur U.S. Holdings completes our infrastructure needs and distribution requirements for the U.S.,” said Tim Kenny, president and chief executive officer of QBE the Americas. “Annualized gross premium income for QBE in the Americas is now expected to be around $4.6 billion or slightly less than 40 percent of QBE Group gross premium income.”
The transaction is pending regulatory approval and expected to close by mid-year. Net tangible assets at the date of acquisition are expected to be $0.78 billion.
The U.S. operations will become part of QBE the Americas division, which currently anticipates no changes in the conduct of General Casualty’s and Unigard’s business.
For more information contact Anne M. Smith or Tom French.