QBE has completed its acquisition of Hang Seng General Insurance in Hong Kong, after announcing the deal in March.

Hang Seng is a subsidiary of HSBC Holdings, and the deal includes a 10-year bancassurance agreement under which QBE will be the exclusive provider and underwriter of general insurance products to Hang Seng’s customers in Hong Kong and China.

QBE paid $US420 million ($412 million) for both the Hong Kong business and bancassurance rights and HSBC’s insurance business and bancassurance rights in Argentina.

The Hong Kong business is expected to add $US75 million ($74 million) to QBE’s gross written premium in its first full year under QBE ownership and is in line with QBE’s strategy of making bolt-on acquisitions.

In March, incoming QBE CEO John Neal said the Hong Kong acquisition “will provide increased penetration into the local market as well as opportunities for further growth through the long-term bancassurance distribution arrangement”.

“The agreement will also offer us an opportunity to advance our interest in exploring China through Hang Seng Bank’s strong operations in that country.”