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Alliant to buy QBE's U.S. specialty agencies for $300 million

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Alliant to buy QBE's U.S. specialty agencies for $300 million

CORRECTION: An earlier version of this article mistakenly reported that QBE Insurance Group Ltd. was selling Southern Insurance Underwriters Inc. In fact, QBE never owned Southern Insurance Underwriters Inc. and is selling a completely different company, Glendale, California-based SIU L.L.C., which does business as SIU Managers. Southern Insurance Underwriters Inc., which is owned and managed by members of the Duesenberg family, is not being sold. Business Insurance regrets this error.

QBE Insurance Group Ltd. will sell its U.S. agency businesses to Alliant Insurance Services Inc. for about $300 million, the Sydney-based insurer said Tuesday.

QBE said the sale of the specialty underwriting agencies, which include Community Association Underwriters of America Inc., Deep South Insurance Services Inc. and SIU L.L.C., is expected to close in early February.

Terms of the deal include an up-front cash payment of $217 million, with the remainder paid over the next five years as part of a performance-based earn-out agreement.

“An important element of the sale is the long-term agreement that we have entered into to retain the underwriting business provided by the agencies,” John Neal, CEO of QBE, said in a statement.

Newport Beach, California-based Alliant is the 12th-largest broker of U.S. business, according to Business Insurance's latest ranking.

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