QBE North America plans to sell its Farmers Union Insurance business to National General Holdings Corp. for an undisclosed price.
The sale reflects QBE North America’s ongoing effort to pare down and focus on its core lines, including core commercial, specialty, programs, crop, Westwood and reinsurance. In August, for example, the company disclosed it would transfer its North America personal insurance policies sold through independent agents to Liberty Mutual’s Safeco Insurance.
QBE North America said it hopes to complete the sale of its Farmers Union Insurance business in the 2019 first half, pending the usual closing conditions and regulatory approval. Lines included in the sale include personal insurance and farm owner coverage, plus the Telecommunications Insurance Program.
“We thoughtfully chose to move this area of the business to National General for its ability to consistently deliver an experience of excellence to our agents and customers,” QBE North America CEO Russ Johnston said in prepared remarks. “By intensifying our focus, we hope to improve our future earnings profile and enhance our ability to deliver our core capabilities to our limited and preferred distribution network.”
Barry Karfunkel, CEO of National General, said that the Farmers Union acquisition will help the company both diversify and grow.
“This niche business fits well with our existing book and will further diversify both our geographic reach and distribution networks,” Karfunkel said in prepared remarks.
Source: QBE North America, National General