The insurance industry may slow down over January but it was full steam ahead for QBE. The giant Australian insurer announced it would take over Winterthur US, the American arm of Winterthur Swiss Insurance Company, from existing owner Axa SA.

QBE is paying $US1.16 billion ($1.5 billion) for Winterthur US. It’s also offering $US636 million ($822 million) to pay off inter-company loans between the new acquisition and its parent – taking the total transaction to $US1.8 billion ($2.32 billion). That’s only slightly higher than Winterthur’s gross annual premium of $US1.48 billion ($1.91 billion).

The transaction is subject to regulatory approval in the US but should be sealed in the second quarter of this year.

Axa, which bought all of Winterthur in June last year, says the merger with the rest of Winterthur will go ahead.

QBE CEO Frank O’Halloran couldn’t be happier with the deal, saying it will boost QBE’s bottom line right from the start.

“We anticipate profit after tax of $US160 million ($206 million) from Winterthur US in the first full year,” he said.

QBE is also taking on the management and renewal businesses of one of its local underwriting partners – Global Underwriting Services.

Global Underwriting will hand over responsibility to QBE for the management of its renewal base from Thursday. Its existing policies will remain under the present administration.

QBE Australia COO Terry Ibbotson says the two companies have had a long and successful working relationship, and the agreement “is in the best interests of brokers and policyholders”.

Global Underwriting provides property, liability and PI products to more than 350 brokers.