Insurance giant QBE expects to make a loss of about $US120 million on the sale of its Mortgage & Lender Services business in North America.
National General Holdings, a US insurance group, will pay $US90 million for the business which QBE sees as none core to its long term strategy.
The overall impact of the sale on QBE’s 2015 full year net profit before tax is expected to be a loss of around $120 million in mainly one off non-cash charges and write-offs.
The sale of Mortgage & Lender Services will reduce gross written premiums by about $US400 million but is expected to free up more than $US100 million in capital. The transaction is expected to close in September.
Australia’s largest global insurer, QBE, which has been restructuring and fighting market headwinds, expects to lift its dividends as it remains on track to increase revenue.
QBE posted a 292% rise in profit to $US742 million for the full year to December. The reversal from a previous loss of $US254 million was achieved on a 6% fall in revenue to $US18.226 billion.
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