US specialty insurance broker Alliant Insurance Services is to acquire the three managing general agents that comprise QBE US Agencies.

Community Association Underwriters of America, Deep South Insurance Services and SIU Managers serve the community association, transportation and earthquake markets.

The sale comes as QBE restructures its global operations under Group CEO John Neal, who is scaling back some of the 100-plus acquisitions made by his predecessor, Frank O’Halloran.

The sale price includes $US217 million ($278.98 million) cash up front and up to $US80 million ($102.85 million) subject to a performance-based earn-out agreement over the next five years.

The sale is expected to be completed early this month.

Under a long-term agreement with Alliant, QBE will continue to underwrite business provided by the agencies.

“QBE maintains a strong commitment to these programs and [will] remain the major market for them as they provide quality products and services to their retail agent network and customers,” QBE North America CEO Dave Duclos said.

The sale follows the announcement in December that Canadian financial services group Fairfax Financial Holdings will acquire QBE Europe’s insurance operations in the Czech Republic, Hungary and Slovakia for an undisclosed sum.

The European general insurance businesses cover property, travel, general liability and product liability.

As reported by insuranceNEWS.com.au in November, Steadfast, Austbrokers and Arthur J Gallagher are understood to be among the bidders for QBE’s local underwriting agencies.

The businesses for sale are strata specialist CHU, which became fully owned in 2004, and mobile and plant equipment business Underwriting Agencies of Australia, which QBE acquired in 2008.

A spokesman for QBE Australia told insuranceNEWS.com.au there is “no update” on the sale of the agencies.