QBE Insurance is strengthening its presence in the Australian financial institutes sector with the purchase of US-owned Cuna Mutual Group.

The acquisition, scheduled for completion in March, was revealed last week, with CEO Frank O’Halloran saying it will strengthen QBE’s share of the Australian credit union and community-based financial institutions sector.

The purchase – no details of the price paid were disclosed – is expected to generate more than $80 million in gross written premiums this year.

“Cuna Mutual Australia is a well respected company with more than 40 years’ track record of successful operations and relationships within this niche environment,” Mr O’Halloran said in a statement to the Australian Securities Exchange.

“It is an excellent business with long-term established customers and evidence of improved underwriting performance.”

Cuna Mutual MD Karen Milton says the move is a win for both companies.

“QBE has a successful track record of acquisitions and integrations, and we look forward to continuing our services for customers through this exciting transition,” she said.

Meanwhile, QBE has sold one of its US insurance businesses, Blue Ridge Insurance Company, to the London-based Catlin Group.

Blue Ridge is a wholly owned subsidiary of General Casualty Company of Wisconsin, which was acquired by QBE in 2007. Under the terms of the purchase agreement, all business previously written by Blue Ridge will be retained by QBE.

Catlin will rename Blue Ridge as Catlin Indemnity Company and write business through the company later this year.