16 April 2010 QBE Shares News
QBE Insurance Group (QBE) is Australia’s largest international insurance and reinsurance group, operating in 45 countries.
QBE Insurance Group is to buy US crop insurer NAU Country Insurance for US$565 million, in line with its commitment to making an acquisition this year.
The purchase price amounts to seven times NAU’s estimated 2010 after-tax profit, according to QBE.
The cheap purchase price relative to NAU’s book value is a reflection of the fact that most of the 2010 profits will be earned in the latter half of this year.
The insurance major said it’s still assessing other acquisition opportunities and that the NAU purchase will further enhance its product diversification and distribution.
Despite the news, QBE Australian share price closed the session down half a percent at $22.10.