OneBeacon Insurance Group in Boston has agreed to sell its National Farmers Union Property and Casualty Company (NFU) subsidiary to QBE Insurance Group for approximately $142 million, subject to adjustment based on closing book value. The transaction includes NFU’s wholly owned United Security Insurance Company subsidiary.
OneBeacon acquired NFU in 1998. The company provides personal, farm and business insurance mainly through a network of exclusive agents. In 2004, net written premiums were $178 million and GAAP book value was $114 million as of June 30, 2005. Subject to regulatory approval, OneBeacon expects the sale to close in the fourth quarter of this year.
OneBeacon CEO Mike Miller explained the reasoning for the sale. He said that NFU has delivered strong results by serving the rural community but its focus is distinct from One Beacon’s, “so this aligns them with good owners while allowing us to focus on our core strengths.”
National Farmers Union Property and Casualty Company, rated A- (excellent) by A.M. Best, writes auto, main-street commercial, homeowners and farmowners coverages in nine Midwestern and Rocky Mountain states. The company also provides insurance programs for rural telephone companies throughout the country. Its United Security Insurance Company subsidiary provides inland marine and other specialty property coverage.
QBE Insurance Group Limited is an insurance and reinsurance company publicly traded on the Australian Stock Exchange. The group has operations in 47 countries with over $2 billion dollars of capital writing in excess of $3 billion dollars in premium. QBE the Americas operations commenced in 1986 when the QBE Insurance Group established a presence in the U.S. QBE the Americas now conducts business through its six companies, QBE Reinsurance Corporation, QBE Insurance Corporation, QBE Specialty Insurance Company, QBE Aseguradora de Riesgos del Trabajo S.A.,Argentina, QBE Del Istmo, Panama and QBE Brasil Seguros S.A.
OneBeacon is wholly owned by White Mountains Insurance Group, Ltd.
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