Australian insurance companies might be a bit too expensive for QBE Australia right now, but it’s still expanding its business opportunities with new acquisitions and deals – including one with major rural operator Elders.

Two weeks ago it purchased Universal Underwriting from OAMPS, and last week it announced a new alliance with First Professional Underwriting Agency (FPUA) which is expected to lead to QBE acquiring FPUA.

In a statement, the two companies said they will “work together over the next 12 months to offer their intermediary partners an enhanced collection of products and service capability”.

The news comes as rural insurer Elders announced it will “strengthen its brand” by replacing its broking service with a new underwriting agency that will issue policies underwritten by QBE.

It’s understood Elders has already informed insurers and underwriting agencies which previously supplied them that their agreements will be cancelled. It’s an action Elders Financial Services Group MD Tim Plant says will “reduce the reliance on other companies to supply insurance products to our rural and regional markets”.

“As a consequence, our broking service will be replaced by a new underwriting agency business, Elders Insurance Agencies (EIA),” he said. “From November 19 EIA will come into effect and issue insurances underwritten by QBE… as we make the transition to underwriting the majority of our own products.

“Clients will continue to have access to a full range of general insurance products, with more of those products being underwritten by Elders Insurance Limited.”