Market awaits details of acquisitions
There’s no word yet on exactly which five product distribution companies QBE has picked up, or even exactly where they are.
CEO Frank O’Halloran announced the US and Australian acquisitions last week, saying the additions will add $200 million in net written premium and will be earnings per share accretive in year one.
It was an unusual statement by QBE, which usually keeps its acquisitions under wraps until the details have been worked out and the contracts signed. Mr O’Halloran expects the operations will contribute about $70 million in gross profit next year.
Credit Suisse analyst Arjan van Veen says it isn’t a major acquisition for QBE, and it’s not uncommon for companies to withhold full details in such situations.
CEO Frank O’Halloran announced the US and Australian acquisitions last week, saying the additions will add $200 million in net written premium and will be earnings per share accretive in year one.
It was an unusual statement by QBE, which usually keeps its acquisitions under wraps until the details have been worked out and the contracts signed. Mr O’Halloran expects the operations will contribute about $70 million in gross profit next year.
Credit Suisse analyst Arjan van Veen says it isn’t a major acquisition for QBE, and it’s not uncommon for companies to withhold full details in such situations.