QBE the Americas to Acquire North Pointe Holdings Corporation

NEW YORK, Jan. 3 /PRNewswire/ -- QBE today announced that it had signed a definitive agreement to acquire North Pointe Holdings Corporation ("North Pointe"), a NASDAQ listed, US-based property and casualty insurance group. The acquisition is subject to the approval of regulatory authorities and North Pointe's shareholders.

North Pointe writes approximately US$150 million of gross written premium in specialist markets involving owner-operated small and mid-sized restaurants, bars, taverns, small grocery and convenience stores, bowling centres, automobile repair facilities, artisan contractors, roller skating centres and forestry. North Pointe sells its products through a network of over 1,900 independent and affiliated agents. QBE will pay US$16.00 per share, for a total purchase price of US$146 million, which is approximately 1.6 times estimated shareholders' funds at December 31, 2007. The acquisition will be funded from existing excess capital held in the U.S.

Mr. Tim Kenny, President & Chief Executive Officer of QBE the Americas, said "The acquisition of North Pointe is complementary to our recent U.S. acquisitions and further increases our distribution through independent and affiliated agents."

Mr. Frank O'Halloran, QBE Group Chief Executive Officer, added: "the acquisition will meet QBE's acquisition criteria including earnings per share accretion in year one. It will also enable us to achieve further synergies with our existing business. Subject to unforeseen circumstances, we anticipate a combined operating ratio in the low 90's in 2009."

Mr. Kenny concluded that: "the acquisition of North Pointe strengthens QBE's position in the specialty insurance market in the U.S. North Pointe's partner agents and customers can be reassured that we will continue to provide superior products and services backed by QBE's highly rated, financially stable companies."

About QBE the Americas

QBE the Americas is a division of Australia's QBE Insurance Group Ltd, one of the top 25 insurers and reinsurers worldwide. The Americas division, headquartered in New York, is a leading North and South American insurer and reinsurer. The division conducts business through various property and casualty insurance subsidiaries in eight countries. QBE the Americas is one of the top 20 property and casualty insurers in the United States, with more than US$4.3 billion in annual gross written premiums and an estimated combined policyholders' surplus of approximately US$2.0 billion.

Additional Information For U.S. Persons Only

North Pointe will file a Form 8-K with the United States Securities and Exchange Commission (the "SEC") regarding the transaction, which will include a copy of the definitive merger agreement. All parties desiring details regarding the conditions of this transaction are urged to review the contents of the definitive agreement, which will be available at the SEC's web site at http://www.sec.gov/.

In connection with the proposed merger, North Pointe will file a proxy statement and other documents with the SEC. We urge North Pointe shareholders to carefully read the proxy statement and any other documents filed with the SEC when they become available because they will contain important information about North Pointe, the proposed merger and related matters. Shareholders also will be able to obtain a copy of the proxy statement (when available) and other documents filed by North Pointe free of charge at the SEC's web site, http://www.sec.gov, or at the SEC's public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549.

QBE and North Pointe, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the merger agreement. Information regarding QBE's directors and executive officers may be found on its web site, www.qbe.com. Information regarding North Pointe's directors and executive officers may be found in its Form 10-K for the fiscal year ended December 31, 2006 and its proxy statement dated April 30, 2007, which are filed with the SEC. Other information regarding the direct or indirect interests, by security holdings or otherwise, of the participants in the solicitation will be set forth in the proxy statement relating to the merger when it becomes available, which North Pointe shareholders are advised to read.