After four years QBE has finally struck a deal to buy a slice of respected UK rival Brit Insurance.

Incoming Group CEO John Neal says QBE “waited three, four years for Brit Insurance”.

QBE will buy the renewal rights, operations and assets of Brit’s regional UK operations, but there will be no transfer of Brit UK’s legacy business, which will be run off.

Terms have not been released, but analysts estimate QBE paid £25-50 million ($38-76 million).

Brit’s underwriting and support staff of almost 130 in eight locations across the UK will join QBE, while QBE Head of UK National Elliot Miller and Brit UK CEO Ray Cox will lead the integration of operations.

QBE Europe CEO Steve Burns says: “[Brit’s] strength in specialising in the UK regional sector, particularly for property business, is highly complementary and additive to QBE’s existing account based around our traditional casualty and motor bias.

“This deal enables QBE to build significantly upon its established UK regional presence and enhances our position in London and the southeast, in particular.”

Bringing together QBE’s £350 million ($536 million) of UK regional gross written premium (GWP) with Brit’s UK regional GWP of about £300 million ($460 million) is expected to make QBE a “top five” player in the UK regional market, with about 5% market share.

But in a note on the deal, Goldman Sachs analyst Ryan Fisher says QBE is likely to be very selective in the Brit business it renews, and a proportion of the combined GWP may fall in the process.

“In fact, given the tough state of the UK regional market and the likely profitability of Brit’s book today, QBE will need to be very selective if it is to avoid diluting the group’s current insurance margin,” Mr Fisher says.

Private equity firm Achilles Netherlands Holdings put Brit’s UK business up for sale last year, shortly after acquiring Brit. QBE was first linked with a takeover last November.

Brit will continue to operate its core division, Brit Global Specialty, which it created this year by combining its global markets and reinsurance units.