QBE the Americas Completes Acquisition of North Pointe Holdings Corporation

NEW YORK, April 30 /PRNewswire/ -- QBE today announced that it has completed its previously announced acquisition of North Pointe Holdings Corporation ("North Pointe"), a Southfield, Michigan based property and casualty insurance group.

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This acquisition represents another significant event for QBE and will further expand the company's market presence in the United States. QBE the Americas is one of the top 20 property & casualty insurers in the United States, with 2008 gross written premium estimated at US$4.2 billion.

"We are pleased to have achieved a successful and timely closing of the acquisition," said Tim Kenny, president and CEO of QBE the Americas. "QBE's strategy of focused diversification and North Pointe's book of business is complementary to our Specialty Insurance division and further increases our U.S. distribution through its agency network."

QBE U.S. Holdings paid US$16.00 per share, for a total purchase price of US$146 million for North Pointe Holdings Corporation. The acquisition was funded through existing excess capital held in the United States holding entity.

QBE also confirms the gross written premium income projection of around US$150 million in the first full year from this acquisition. Frank O'Halloran, QBE Group CEO, said "North Pointe will be earnings per share accretive in year one. This is before estimated per annum synergies of US$15 million after tax from 2009."

With a focus on owner-operated businesses, the company is the nation's largest insurer of independent bowling centers and largest writer of liquor liability insurance in Michigan.

"Our management team, our employees, and partner agents are excited about joining the QBE family, as well as the opportunities that this represents," said James Petcoff, Chairman, CEO and President, North Pointe. "QBE brings financial strength, enhanced scale and a refined focus on what we do best, servicing our agents and clients."

The North Pointe transaction was originally announced on January 3, 2008.

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 an estimated US$4.2 billion in gross written premium and a combined policyholders' surplus of more than US$2.0 billion in 2008.