NU Online News Service, June 3, 1:57 p.m. EDT
QBE says it has completed its acquisition of Balboa Insurance from Bank of America.
The transaction, first announced in February, includes a long-term distribution agreement with Bank of America for lender-placed and voluntary homeowners, contents, motor and other related consumer lines and associated services, Sydney, Australia-based QBE says.
In addition, the acquisition includes Balboa's employees, systems and client relationships.
“The acquisition supports QBE's commitment to growing the business through product diversification and new distribution channels,” says QBE the Americas CEO John Rumpler in a statement. “It also complements our current book of business and our high level of customer service.”
For its part, Bank of America says in a separate statement that “the sale is consistent with Bank of America’s strategy to focus on businesses that directly serve customers and clients around the world, while continuing to strengthen its balance sheet.”
The bank also says QBE purchased substantially all of the insurance liabilities and certain other assets of the Balboa business in exchange for QBE’s acquisition of an equivalent amount of cash and other assets through a reinsurance transaction with Balboa.