QBE announced on Monday that it has agreed to sell its Australian and New Zealand agency businesses to Steadfast Group Limited for A$290 million (roughly $225 million).

The businesses include CHU Underwriting Agencies Pty Limited (CHU), Corporate Underwriting Agencies Pty Limited (CUA) (also known as Body Corporate Brokers or BCB) and Underwriting Agencies of Australia Pty Limited (UAA).

According to QBE, the upfront cash consideration is A$290 million represents an EBITDA multiple of approximately 8-times.

QBE said that the final consideration is subject to an earn-out based on 2015 and 2016 performance relative to 2014, and will fall within the range of A$232 million and A$348 million ($180 million and $270 million).

In a statement about the sale, QBE Group CEO John Neal said that a key element of the sale is the 10-year exclusive distribution agreement with Steadfast under which QBE will retain the underwriting business provided by the agencies.

“We look forward to continuing to work closely with Steadfast and CHU, CUA and UAA to further grow our program business,” Neal said. “We are pleased to progress another important step of our capital plan with the sale of the Australian agency businesses at a price we consider to be attractive for our shareholders.”

QBE expects to complete the sale in late March.

Recently, QBE also sold its agency businesses in North America, with a similar agreement to retain the underwriting business from three agencies that it sold to Alliant Insurance Services—Community Association Underwriters (CAU), Deep South and SIU Managers—for $300 million in a deal that closed on Feb. 2. The exact term of the underwriting agreement was not disclosed.

Topics Agencies Underwriting Australia