Australia's largest international insurance group, QBE Insurance (QBE) said on Friday it had agreed to buy North Pointe Holdings, a NASDAQ listed US-based property and casualty insurer for US$146 million.
QBE said the acquisition will be funded from existing excess capital held in the US.
In addition, it is subject to US regulatory and North Pointe shareholder approvals.
"The acquisition of North Pointe is complementary to our recent US acquisitions and further increases our distribution through independent and affiliated agents," chief executive officer Tim Kenny said.
North Pointe writes about $150 million of gross written premium in specialist markets involving owner-operated small and mid-sized restaurants, bars, taverns, small grocery and convenience stories, bowling centres, automobile repair facilities, artisan contractors, roller skating centres and forestry.
The property insurer sells its products through a network of over 1,900 independent and affiliated agents.
QBE said the purchase price of $146 million is approximately 106 times estimated shareholders' funds at 31 December, 2007.
Shares in QBE rose 17 cents to $32.43 at 11:15AM AEST.
