QBE has agreed to sell its Australian travel insurance business to nib holdings limited (nib) in a deal worth up to $25 million.
The transaction, which should complete in the first quarter of next year, affects 150 employees, who will be offered roles with nib.
QBE Travel is Australia’s fourth largest travel insurer with approximately 7% of the market, but it accounts for less than 0.5% of QBE Group’s gross written premium.
Listed health insurer nib operates Australia’s third largest global travel insurance distributor, World Nomads Group.
QBE says the decision was made following an extensive review.
Australia and New Zealand CEO Vivek Bhatia says the move is part of the insurer’s drive to build a “stronger and simpler” business.
“While we’re proud of our long history in this market and strong industry partnerships, we felt that this was the best outcome for our customers and business partners as we simplify and strengthen our business.” Mr Bhatia said.
“In nib we have found a buyer who is looking to grow their travel insurance business and they saw a great opportunity to deliver that through this acquisition. We believe nib is a good natural fit given their commitment to the travel market and the obvious synergies with health insurance.”
QBE says there will be no impact on customers.
More details in our regular bulletin on Monday.