QBE Acquires Cumbre Seguros

February 2, 2007

QBE the Americas, the North American subsidiary of Australia’s QBE Group, announced that it has acquired 100 percent of Cumbre Seguros, a specialized insurer in Mexico from a group of private investors. The transaction, which is subject to regulatory approval, is expected to close during the second quarter of 2007.

“Cumbre Seguros writes commercial property & casualty insurance products for mid and small sized businesses and had gross premiums of US$58 million in 2006,” said the bulletin. “QBE estimates that the Net Tangible Assets of Cumbre Seguros amount to US$26 million.”

Tim Kenny, QBE the Americas President & CEO, commented: “The acquisition of a premier company such as Cumbre Seguros allows us to enter the Mexican insurance market using an established entity with excellent people and underwriting skills. The acquisition, which will enhance earnings for QBE’s shareholders in the first year, is in line with our objective of establishing QBE in the five largest markets in Latin America: Argentina, Brazil, Colombia, Mexico and Chile.”

Jose Sojo, General Manager for QBE Latin America added: “The acquisition of Cumbre Seguros is aligned with our plan to enter the five largest markets in Latin America, four of which we have now achieved. We will continue to monitor the Chilean insurance industry in search of opportunities to enter this market if conditions are appropriate for us.”

QBE, Australia’s largest insurer and the biggest investor at Lloyd’s, has been expanding rapidly in the North American Market. It recently entered into agreements to acquire both Winterthur’s U.S. operations from AXA (See IJ web site Jan. 5) and Hannover Re’s Praetorian subsidiary (See IJ web site Dec. 13, 2006).

Topics Mergers & Acquisitions USA Mexico

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