NU Online News Service, Feb. 4, 2:52 p.m.EST

QBE Insurance Group Ltd., of Australia, continued its buyingspree in the U.S. Thursday by acquiring most of the insuranceportfolio of Balboa Insurance Group from Bank of America.

Under the deal, QBE entered into an initial 10-year distributionagreement with Bank of America for Irvine, Calif-based Balboa’sportfolio of coverage of foreclosed homes and force-placedhomeowners, contents, motor and other related consumer lines andassociated services.

Balboa’s lender’s mortgage insurance business is notincluded.

QBE will pay Bank of America $700 million upfront for the Balboaportfolio it is acquiring. The portfolio is valued at $1.2 billion.QBE will also pay unspecified further cash to Bank of America,according to data supplied by both companies.

Bank of America acquired Balboa through its acquisition ofCountrywide Mortgage Corp. in 2008.

QBE completed the acquisition of NAU Country, a crop insurer,Ramsey, Minn., last June.

Balboa competes with Munich Re, QBE and Assurant—the No. 1seller in the U.S. market of forced-placed insurance, which is aform of coverage that costs more than homeowners policies becausethe properties are more prone to neglect.

Banks require mortgage investors to purchase insuranceprotecting seized houses against vandalism and storm damage.

QBE also announced its Americas division has created aU.S.-based general aviation underwriting operation. The aviationteam is headquartered in Atlanta and is designed to expand thecompany's global aviation activities, QBE said. QBE already writesaviation insurance in Europe, Australia, New Zealand, Asia and thePacific.