QBE’s profile in Europe continues to grow, with a lucrative new deal in France and reported plans to stay firmly on the acquisition trail.

But a local analyst following the company’s global business says QBE won’t be spending big money in Europe while better prospects exist in the US market.

QBE has been won a tender by the giant French national rail operator SNCF for its comprehensive general liability program.

The three-year deal will see QBE become the lead insurer on the layer excess of €150 million ($254.6 million), and participate in layers up to €500 million ($848.3 million).

The company already participates in SNCF’s property program.

QBE’s CEO European Operations Steve Burns was quoted in European trade media earlier this month as seeking acquisitions in Europe, as well as “bolt-ons” for its existing portfolio.

Peter Warnes, Head of Equity Research at Morningstar, says there are plenty of potential European targets for QBE, but it’s a matter of getting the right one.

“I think that in Europe they’ll continue to get bolt-on acquisitions,” he told insuranceNEWS.com.au.

“I don’t think they’re going to go for something big in Europe. They’ll probably continue to look in the US if it’s going to be of size, because that market has more potential for them than Europe. It’s hard to buy pan-European.”

QBE had no trouble attracting investor support for a £550 million ($1 billion) fixed six-year senior note issued in the UK market last week.

The proceeds will allow it to roll over existing senior notes that are maturing and replace short-term debt.