QBE has bought US insurer National Farmers Union (NFU) Property and Casualty and its subsidiary United Security Insurance in a move that will increase the company’s annual gross written premium from its Americas operations to about $US1.4 billion.

The move is yet another example of the way QBE, which already conducts more than 75% of its business offshore, is focusing on foreign expansion.

QBE says a purchase price of $US140 million was paid for the US insurer, which writes personal and commercial business and provides specialist package insurance for small regional and rural communications.

According to the insurer, NFU offered an attractive acquisition opportunity with combined operating ratios “in the low 90s in recent years, insurance profits of around 13%, and high customer retention”.

“This acquisition provides QBE with an opportunity to expand its US regional business in states and classes of business which are complementary to its existing sizable operations,” QBE Group CEO Frank O’Halloran said.

NFU’s gross written premium for this year is expected to be around US$200 million, with net earned premium around $US190 million. It’ll report its annual result on August 17.