QBE to acquire mortgage insurer
Just weeks after withdrawing its bid for Insurance Australia Group, QBE Insurance Group has confirmed that it has signed agreements to acquire PMI Mortgage Insurance Limited in Australia and New Zealand and entered into an in principle agreement to acquire PMI Mortgage Insurance Asia Limited.
The transaction will see QBE paying net tangible assets of around $1,027 billion, with 80 per cent being paid in cash and the rest in a promissory note payable in three years and subject to a number of conditions relating to claims.
PMI Australia is a mortgage insurer for lenders and writes about 40 per cent of the residential mortgage insurance market in Australia.
Commenting on the transaction, QBE chief executive Frank O’Halloran said the purchase of PMI in Australia and Asia was in line with his company’s diversification strategy.
“The acquisitions have been structured to allow us to meet or exceed our minimum profit requirements, even in the event of extremely adverse economic conditions over the next three years,” he said.
AUTHOR
Mike Taylor
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
