Listing other deal benefits, QBE said it will now be able to offer a full suite of agricultural insurance products to QBE's and NAU's customers, and that the acquisition strengthens QBE's position as a leading insurer in the United States while enhancing U.S. product and geographic diversity.

The transaction, which is subject to regulatory approvals, is expected to be completed in July. QBE said it will boost gross written property and casualty premiums up to $5 billion for 2010, from $4 billion in 2009.

In 2009, NAU wrote $976 million of gross earned premium. Net earned premium was $354 million, and profit after tax was $92.5 million. The combined ratio was 61.3 in 2009, 87.3 in 2008 and 62.6 in 2007.

QBE noted that the $565 million purchase price is roughly seven-times estimated 2010 after tax.

"NAU is a very well-managed and profitable crop insurance provider in the United States with excellent systems," Mr. Halloran said. The high price "reflects the high quality of the underwriting and management business" and the fact that the substantial majority of 2010 profits will be earned in the second half of the calendar year, Mr. Halloran said.

He added that synergies are expected from savings in reinsurance costs and cross-selling of various QBE agricultural insurance product offerings to NAU's client base.

QBE has done a series of deals in the United States in the last few years to diversify its writings.