Gerling Australia has been effectively put into run-off following the sale of its renewal book to QBE. The deal is understood to have cost about $30 million. The German insurer will only keep the trade credit insurance business and local policies of its international clients.

Gerling will receive a commission for any policies renewed with QBE once the deal is finalised and approved by the regulators. It specialised in fire, liability, engineering/construction and marine. Gerling will keep the trade credit insurance business and local policies of its international clients in the deal with QBE, and receive a commission for any policies renewed with QBE once the deal is finalised and approved by regulators.

It’s understood the reinsurance company, which as been active in the local market for many years, will withdraw from the local market as Gerling switches its focus from the world to its core European businesses.

In other moves this week, QBE has purchased an additional 9% of the capacity in Lloyd’s Syndicate 386 for 2003, increasing QBE’s share of the syndicate’s capacity to about 49%. QBE already manages the syndicate.

And the company also announced it is pulling out of the Japanese general insurance market and will now only underwrite selected Japanese inwards reinsurance.